Journal of Business & Financial Affairs

An Insight into Indian Start-Ups Investment Scenario

Abstract

Aliza Saifi

Startups are the stepping stairs for any industrialization and economic growth. But in most developing countries startups growth is hindered due to financial inadequacy. It is a general phenomenon that a startup which is the outcome of founder’s brain ware and also backed by strong business idea may have insufficiency of personal treasure trunk i.e. personal financial resources. Funds are required for purchase of fixed asset, working capital management, expansion and modernization, debt restructuring etc. Thus for survival and growth timely influx of fund is needed which can be raised either by equity financing like angel investment, venture financing, capitalist or private equity etc. or through debt financing like loans from banks and NBFCs, external commercial borrowings, venture debts etc. Other sources like crowd funding, business incubators and accelerators can also be used. There are certain ways to finance startups. In this research paper recent funding pattern of Indian startups is studied. This research paper aims at providing the general information regarding the trend in startup funding ecosystem with especial emphasis upon equity financing sources. This paper is of descriptive nature based on analysis of five year secondary data studied with the help of graphs and tables, etc.