Funding

Private equity-venture capital investments decline 15% to $6 billion in Q3 FY23: report

The PE-VC investment figures for the first nine months of 2023 at $23.6 billion (across 542 deals) came in 38% lower compared to the same period in 2022 (which saw $38.1 billion being invested across 1,141 deals).

EV startup Fisker raises $150 million from existing investor

The EV company expects to use the proceeds to ramp up deliveries. Fisker earlier this month reiterated its plan to increase deliveries of its flagship Ocean sports utility vehicle to 300 units per day later this year.

WestBridge Capital to pick up secondary stake in Meesho at around $3 billion

The Indian fund which has backed companies like Freshworks, Dealshare and PhysicsWallah is in talks to pick up about 2% stake in Meesho.

ETtech Deals Digest: September brings some cheer as funding more than doubles sequentially

As the sequential rise provided a respite during a funding decline, September fared relatively better in terms of year-over-year comparison, down only about 8% from the total deal value in September 2022.

Drip Project raises funding from Blume Founders Fund, others

The Mumbai-based startup aims to expand its product catalogue from 500 to over 1,000 products, build more inventory and expand its growth, with the help of the funding, as per a statement.

AI startup AlphaSense valued at $2.5 billion after latest funding round

Market intelligence platform AlphaSense has raised $150 million in a fresh round of funding that boosted its valuation to $2.5 billion, underscoring strong demand for artificial intelligence (AI) startups.

Third Wave Coffee raises $35 million in funding round led by Creaegis

Third Wave Coffee cofounder and chief executive Sushant Goel confirmed the new funding without providing any details. Creaegis closed a $426 million fund on September 20 through which it has made the investment in the coffee chain.

Bollywood actress Dia Mirza invests in parenting platform BabyChakra

In an official statement, the Mumbai-based startup said Mirza’s investment will enable them to incorporate sustainable and clean care principles into their product offerings.

Gaming startup QuriousBit raises $2 million in funding from Lumikai, General Catalyst

The funds will be used to expand the team size, currently at seven, in product and system development and in marketing its games. QuriousBit did not disclose the valuation at which the firm raised the funds.

Physician engagement startup Doceree raises $35 million led by Creaegis

Founded in 2019, Doceree helps pharmaceutical and life-sciences companies and healthcare media agencies with solutions that seamlessly reach healthcare professionals (HCPs) on their networks and within their digital workflows to achieve better patient health outcomes.

Funding FAQ questions

What are the main sources of funding for startups?
When a startup is moving from an idea to execution stage a startup can tap into the network of angel investors, family offices, and high net worth individuals from their personal network.

Equity funding is the most common source of funding for startups. Startups give shares of their companies at a predetermined value in exchange of capital. Several venture capital funds exist to meet the capital and strategic needs of a startup at different stages of its growth.

Debt financing has also gained popularity in India. A company can raise venture debt from institutions once its raised venture capital. Private equity and hedge funds also enter the mix at the growth stage of a company to provide capital. Increasingly, companies, VCs and individuals have launched accelerator and incubation programmes that provide seed money to startups. Strategic and corporate veggies funds also invest into startups at early and growth stages

What is A, B & C series funding & how does it work?
Traditionally a startup raises a series A round when it has discovered an addressable market and somewhat proven that they can execute the idea in that market. It is often the stage when a company begins to develop its monetisation model and long-term growth plan. It is also the first round that a startup may get an institutional buy-in. In India early stage VCs include the likes of Sequoia Capital, Matrix Partners India, Lightspeed, and Elevation Capital.

A Series B round is raised by a startup to take its growth to the next level internally as well as to create product awareness. The round is typically used by startups to acquire premium talent and prepare internally to meet the growing demand of its product and fine-tune its product market fit. Series C onwards, the company raises funds to capture a bigger pie of the market, aggressively grow its user base. Strategic investors and growth stage funds like SoftBank Corp, Tiger Global Management and Temasek may come in at this stage.