Coronavirus impact: Early funding of start-ups may hit a stumbling block

This comes as seed investments in India during the January-March quarter, which was hit by the lowest level in five quarters

Even though the spread of Covid-19 and the subsequent lockdown have severely affected the start-up ecosystem in the country, experts believe that many of them who are mostly in early stages, are going to find it extremely difficult to get access to funding once the situation improves. The venture capital (VC) investors, they said, would prefer to only invest in their existing portfolio to protect their investments than putting any fresh money into new ideas.

“Is the situation getting better in India, is it stabilising or is it getting worse? VCs or funds would see an opportunity to get in and