The Tech Panda takes a look at what’s buzzing in the startup ecosystem.
The startup ecosystem the world over has been busy. SMBs (heart) AI Enterprise AI spending jumped 130% in a year with SMBs leading the way, according to a Wharton study.
In India, as per Tracxn’s India Tech 9M 2024 Report, India Tech has received US$7.6B in funding, a 7% drop from $8.2B in 2023 and a 66% decline from$22.4B in 2022. India also saw 5X growth in unicorns, nearly doubling tech IPOs in 2024 YTD, where in the Indian tech startup ecosystem ranks 4th globally, following the US, UK, and China, with a cumulative total of 136K startups and 99 active unicorns. India saw six new unicorns in 2024 YTD, a 500% increase compared to just one in 2023. IPO numbers have surged, with 29 tech companies going public in 2024 YTD, compared to 15 during the same period in 2023. Bengaluru, Mumbai, and Gurugram are the top funded cities in India in 2024 YTD.
India is seeing quite some interest in the biotechnology sector and space tech startups, with funds pouring in for early stage tech startups and women entrepreneurs in blockchain.
As per Tracxn’s FinTech Q3 2024 Report, the Indian FinTech ecosystem secured US$778 million in Q3 2024, achieving 66% Year-on-Year growth. India ranks 2nd after the US in terms of fintech funding raised in Q3 2024. Since 2023, Q1 2023 has been the highest-funded quarter with overall funding of $1.16B followed by Q3 2024. The top-performing sectors in Q3 2024 included alternative lending, investment tech, and payments. In fact, Q3 2024 saw two startups attaining IPO status along with one company turning unicorn.
Globally, in tech funding in Q3 2024, the UK has ranked third in terms of country-wise startup funding, ahead of Germany and China even though total funding into UK tech startups dropped 27% to $2.66B in Q3 2024, compared with $3.65B in Q3 2023. London ($1.6B) took the lead in terms of city-wise funding with high tech, enterprise applications, and life sciences the top-performing segments.
Driving India’s Biotech Future
In September, the Indian Venture and Alternate Capital Association (IVCA), in collaboration with the Biotechnology Industry Research Assistance Council (BIRAC), hosted a pivotal roundtable at Global Bio-India 2024, which convened 20 leading biotech experts, policymakers, industry leaders, and investors to explore emerging trends and investment opportunities in India’s burgeoning biotechnology sector.
The discussion, chaired by Vishwajeet Sahay, Additional Secretary and Financial Advisor, Department of Biotechnology, India & co-chaired by Dr. Manish Diwan, Head – Biofoundry, NCR Biotech Cluster & IVCOL at BIRAC, Mission Director – Make In India Biotech sector, Department of Biotechnology, Government of India, spotlighted the increasing need for growth-stage capital to support biotech startups with longer gestation periods. Investors emphasized that co-investment strategies and mobilizing domestic capital pools are critical to scaling biotech ventures in India.
Dr. Manish Diwan, Mission Director of the Make in India for Biotech sector and Head of Biofoundry at BIRAC, said, “Private equity and venture investments in biotech innovations are growing. The IVCA-powered interaction, chaired by FA & AS, DBT and DST, Government of India, Mr. Viswajit Sahay, with national and international PE and VC fund representatives at Global Bio-India 2024, generated useful recommendations for attracting high-risk investments for the sector. DBT/BIRAC’s Biotech Fund of Funds – AcE, which generated impressive 28x private investments, was appreciated. The recent approval of India’s BioE3 policy by the Union Cabinet is very timely and will catalyze the much-needed infrastructure growth and attract investments for bio-innovations and bio-manufacturing. Private and corporate investors are critical partners in supporting this growth momentum for ‘Viksit Bharat’.”
Sahay launched the Fund Of Funds (AcE Funds) Booklet, highlighting the successful performance of the initiative since its inception in FY 2017-18 with a corpus of INR 150 crores. The roundtable underscored the importance of strengthening mentoring programs, with investors and incubators supporting biotech startups. Initiatives like BIRAC’s Entrepreneurship in Residence (EIR) and the DBT’s i3c BRIC-RCB Ph.D. Programme aim to build a highly skilled talent pool in biosciences.
Participants recommended enhanced global collaborations to bolster the international presence of Indian biotech companies, facilitating better market access. And investors raised concerns regarding data security and access. In response, BIRAC officials highlighted the establishment of the Indian Biological Data Centre (IBDC), a national repository for life science data, which will provide critical data infrastructure for biotech research in India. Strengthening IP support systems, including patent funds and commercialization clarity, was emphasized.
TDV Partners launches new fund of Rs 50 crore
Early Stage focused micro VC firm Trillion Dollar Ventures launched their second fund with a total corpus of Rs 50 Crore. The fund has doubled its corpus size in the 2nd fund with an aim to support early stage tech startups in India. It will invest Rs 1-2 crore per startup, supporting founders with a global outlook. TDV Partners would focus on emerging sectors like spirituality tech, consumer upgrade along with fintech, gaming, and social. The fund expects to make 10-12 investments annually, with capital deployment starting Q3FY25.
Ujwal Sutaria, Founder & GP, TDV Partners, says, “We want to back startups with potential of Trillion Dollar outcomes as our name reflects our genesis of backing startups. We believe in taking non consensus bets which is where a fund makes the alpha. Our proven track record with the last fund has encouraged us to double the target corpus with the second fund and increase the average investment size too. With our first fund, we have provided an exit opportunity within 2 years of investing in the company and generated over 60% IRR. The Fund I MOIC is 3 within two and a half years. We are confident of continuing our track record with the new fund as well.”
TiE Global Summit 2024 targets INR100+ cr in funding for TGS100 showcase startups
In October TiE Bangalore announced that it is targeting over INR100 cr to be available in equity funding for its prestigious TGS100 Start-up Showcase at the TiE Global Summit (TGS) 2024. TGS100 is the premier global startup showcase hosted annually by TiE. It focuses on early-stage technology and technology-enabled startups. The initiative recognizes top startups based on their innovative business models, market traction and strength of IP, providing them with the opportunity to engage with prominent venture capitalists, angel investors, and industry leaders. The TGS100 startups will also receive exposure to a global audience of entrepreneurs, investors, and experts at curated events at TiE Global Summit 2024. The summit will take place in Bangalore from December 9-11, 2024, and in Mysore on 12th 2024.
“As TGS100 continues to gain momentum, we expect further investment from domestic and international investors, enhancing the resources available for these startups,” said Naveen Gupta, Chair of TGS100 Initiative and Charter Member, TiE Bangalore. “We are grateful to our current investors for their invaluable support, which will enable participating startups to scale and make a substantial impact in the technology space. This funding will accelerate their growth and further strengthen the entrepreneurial ecosystem.”
MoU to create a conducive ecosystem for space tech startups
In a significant development aimed at accelerating the growth of India’s space technology sector, the SIA-India, an association for space industry and T-Hub, India’s premier innovation hub, signed a Memorandum of Understanding (MoU), focusing on fostering innovation in space technology through structured mentorship programs that leverage the strengths of both organizations. Startups will benefit from tailored guidance, industry insights, and technical expertise, facilitating their growth and development. Additionally, this partnership will provide enhanced global market access, allowing space tech start-ups to explore new business opportunities and collaborate with international space agencies, companies, and research institutions.
“By creating a conducive ecosystem for space tech start-ups, this MoU bridges the critical gap between innovation and industry access. Such an environment is essential for nurturing breakthrough technologies, fostering collaboration, and driving India’s space sector toward global leadership. With this partnership, we are ensuring that the next generation of space entrepreneurs has the tools and opportunities to thrive,” said Dr. Subba Rao Pavuluri, President of SIA-India.
A special initiative for female entrepreneurs in the blockchain space
Cryptocurrency exchange Bitget launched “Pitch n Slay,” a special initiative under its Blockchain4Her program organized to provide exposure for female entrepreneurs in the blockchain space. Building on Bitget’s larger $10 million Blockchain4Her project, the program extends targeted support to promising women-led startups by offering them a chance to secure up to $100,000 in funding by Foresight Ventures.
The program, created in partnership with organizations such as World of Women, Women in Web3, and Bitget Wallet, is structured to offer a pathway for women entrepreneurs to receive the capital, guidance, and exposure necessary to scale their projects. Additional partnerships with Foresight Ventures and Morph highlight Bitget’s emphasis on uniting resources and mentorship from leaders within the blockchain ecosystem.
Bitget’s CEO, Gracy Chen, said, “Bitget is a proudly gender-inclusive organization, with over 45% of our management roles held by women. Through Blockchain4Her, it’s our honor to support women founders with opportunities for exposure, mentorship, and funding. We’ll continue to expand this platform, creating pathways for growth and amplifying women-led startups in Web3,” said Chen.
