Annual Startup Investment Analysis- Dust hasn’t settled yet!

[VCCEdge] [News Corp VCCircle] Sharing with you the Edge views on Annual Startup Investment Analysis as well as a few statistics on the industry. Should you seek further information please feel free to reach out to Vijay Prakash Rai (vijay.prakash@vccircle.com). Investments in startups declined significantly in number (28%) and value (44%). The sizes of deals got smaller as angel and early stage funding dominated and late stage funding took a backseat. [OVERALL STARTUP DEALS] Investors continued to back startups till Q1 2016, however value of investment has dropped significantly across all quarters this year as compared to 2015. Investors seem to be sitting on the side-lines, being selective in making investments, and focusing more on realizing investments. Given the fact that both the number and value of deals continue to slip across the early-stage spectrum, the trend clearly suggests that investors have started writing smaller cheques. Hence, clearly raising capital was not at all easy this year. The number of investments in startups fell to 181 deals in the last quarter of 2016 from 346 a year earlier. Likewise, the total amount of funds deployed slid to $411 million from $648 million in the stipulated period. Investors are writing smaller cheques and conservation is expected to continue as a theme for the next couple of years, showing a clear trend of "cautious money" available in the market. [SEGMENT SUMMARY] FinTech leads in terms of the number of deals with a total of 67 investments worth $183 million, followed by HealthTech startups which attracted the maximum funding of about $69 million across 60 deals in 2016. "We are already a service economy. Be it EdTech or HealthTech or FinTech- 70% to 80% of the capital is going into consumer tech. These startups are improving either the front-end or the back-end services of a business. They are getting ready for a bigger game," said Nita Kapoor, chief executive of News Corp-owned The VCCircle Network. TOP CITIES [STARTUP DEALS] Metro cities lead as funding destinations. The National Capital Region (NCR) topped the list, recording 268 deals, followed by Bengaluru with 208 deals and Mumbai with 136 transactions. Hyderabad saw 27 deals while Chennai recorded 22 transactions. For more information on our products, please feel free to reach out to Vijay Prakash Rai (vijay.prakash@vccircle.com, +91-9987526393). [vccircle] A-83, Ground Floor, Sector - 2, Noida - 201301, Phone: 0120-4171111 Mosaic Media Ventures Pvt. Ltd., A-83, Ground Floor, Sector 2, Noida, UP 201301, India [Unsubscribe here]