How Startups Should Tackle The Upcoming Downturn

How Startups Should Tackle The Upcoming Downturn

SUMMARY

Indian startups raised more than $2.7 Bn through mega anchor investments as well as pre-IPO rounds and $7.36 Bn through IPOs in 2021

The combination of a pandemic, market slowdown and escalation of the oil wars has brought the bull run to a halt

With the looming threat of a downturn, startups need to be prepared for bouts of economic turbulence in order to last

The last decade has been especially good for startups amidst a bull run and record highs. However, the combination of a pandemic, market slowdown and escalation of the oil wars has brought this run to a halt. Shortly followed by the DOW dropping 2000 points, a first since the 2008 recession, the Indian startup ecosystem is definitely headed for a downturn.

As the Federal Reserve looks to combat the inflation that has hit a 40-year high, it has unwound almost a decade of stimulative monetary policy. As a result, the market is going to experience a systematic re-pricing of both capital and risk. Startup valuations too are not immune to this as all financial markets are ultimately interconnected.

Note: The views and opinions expressed are solely those of the author and does not necessarily reflect the views held by Inc42, its creators or employees. Inc42 is not responsible for the accuracy of any of the information supplied by guest bloggers.

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