Key Funding Trends to Watch Out for in 2017
Entrepreneur's New Year’s Guide
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While 2016 was considered to be a year of diminished funding, 2017 could start on a high-note. While tepid funding continues to remain a concern for entrepreneurs, innovative funding methods and new investor participants can be the new sunshine for the ecosystem.
Here are some of the key investment trends that one could expect in 2017
1. Marriage with the corporate sector
The ecosystem is starting to see the emergence of new investors and mentors in the form of multinational companies and traditional companies. A very recent example of this was Hero MotorCorp investing in new-age technology startup Ather Energy, that manufactures electric motorcycles.
The investments act as a symbiotic engagement – while startups get to warm up to a larger setup and reliable money, big companies get to diversify beyond traditional businesses and onboard innovative technology expertise.
2. Government funds
The Indian government has been late to join the party! Today some of the biggest states in India have floated funds and opened accelerators to hone entrepreneurs and support innovative technology. States like Telangana, Karnataka, Uttar Pradesh have taken special initiatives to encourage entrepreneurship in their respective states.
3. Collaborative funding
With the abundance of funding opportunities and scarcity of pristine funds, one can expect more collaborative funding to happen in this space.
4. Mushrooming New Funds
Even though funding has slowed down, the emergence of new investment funds has compensated for that phenomenon. Funds like Reliance Jio Digital India Fund, Maitreyi Digital India fund and more come with a plethora of cash for new-age startups. According to a report by Tech Circle, around 36 new funds have been started by new and existing investors over the last ten months.
While the deal flow was slow in 2016, the emergence of new trends and angels in the ecosystem indicates a new tunnel of hope in 2017