• Mon. Jan 30th, 2023

Quote on Overview of Startup Investment in 2022 and Outlook for 2023

Dec 31, 2022

Neeraj Tyagi_Co-founder&CEO, We Founder Circle

Neeraj Tyagi, CEO & Co-Founder, We Founder Circle

2022 has seen the trend shifting from growth at all costs, to more sustainable growth. Both startup founders & investors have become cautious of high cash burn and have started focusing more on cost reducing & bringing visibility of profitability or at least making businesses unit economics right.

We are looking at a lot of course corrections in terms of team restructuring, bridge fundraising, founders cutting their own salary cuts, removing perks & focusing on core business rather than trying multiple side products. And this trend will continue in 2023 also.

There’s no denying that funding has been slowdown for start-ups, especially at the growth stage, but funding as a whole is not going to stop. In fact, those startups that were prioritizing profitability are getting center stage & are hot favorites among investors.

The funding winter seems to be a prolonged one and would probably extend for the first half of 2023, as the global market corrects itself further in the rising interest rate environment. However, startup funding is not likely to see any imminent pause, especially for early-stage ventures. From Tier 2/3/4, a huge inflow of new angel investors is on the rise and so seed to angel stage funding will see a lot of investments and the contribution of angel investors will be the most significant in overall funding in 2023.– said Mr. Neeraj Tyagi, CEO & Co-Founder, We Founder Circle