From fund seekers to fund raisers

Published on March 10, 2022 by

Established startups, who were once fund seekers are investing in new start-ups and creating a healthy startup eco-system.

National Investment promotion and Facilitation Agency of India recorded that out of the 44 Indian startups that entered the unicorn list last year, 38 of them were funded by enterprises that entered the unicorn club in the last decade. A startup owner , Siddhant Saurabh, who’s company’s current valuation is $600 Billion, said, “We started our company in 2018 and then we started looking for funding and came across Smile group who raised our Series A funding.”

According to a report by Inc42, Indian startups have raised $38 billion last year out of which almost $20 billion funds were yet alone raised by other Indian companies. Startups that were fund seekers a few years back are now the angel investors of startups looking for funding. Enterprises are realizing the disruptive potential of start-ups and are thus, partnering/investing in them. According to Inc42 data, over 950+ angel and individual investors participated in the start-up funding. A finTech unicorn Cred, founded in 2018, participated in 62 startup funding deals as an angel investor in 2021. Souvik Mohanty, an equity expert said, “the good thing that comes out of the already established unicorns, investing in new age companies is the experience that these companies have with themselves and apart from that it does help in fund raising process. Also the important thing is to make a sustainable system which may help the companies in a longer run.” These days a lot of young start up founders, have first worked on their own startups and then with the revenue generated they fund other infant startups. This boosts the entire startup eco system as founders who were before fund seekers are now the investors.

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