The current scenario in the business world is making it crystal clear that the dynamics of the market have the potential to change quickly, which makes us reevaluate our trust in foreign investors and businessmen on which some Indian startups rely for funding and investment. And as we are all aware of the vitality of funding in startups, we know how serious it is.
The need for building a venture capital industry is more than ever to ensure that the Indian businesses and startups are not subjected to onerous influence from foreign investors.
After the Indian Government retaliated with boycotts of Chinese products subsequent to the attacks in Galwan valley by Chinese soldiers, it has become the need of an hour that our startups remain self-independent and do not rely on investors of other countries for the funding source.
Currently, India stands at the top 3 positions in the startup ecosystem and more than $5 billion has been invested as of last year in startups that are more than 1500 in number. And as per the recent statistics, India is now home to 30 unicorns which means startups with more than or equal to $1 billion in valuation.
But it is very important to note that more than 80% of funding in these startups come from sources outside of India. If we talk specifically about Chinese investors, then $4 billion invested in Indian startups comes from China and these investments have also supported 18 out of 30 unicorns. And as per the current scenario, the startups need to become more self-reliant in startup financing.