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Startups increasingly raising venture debt as investors fear funding winter

Most investors are more cautious in deploying capital towards growth businesses, especially in late-stage startup investments, which are key drivers in a funding cycle

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Peerzada Abrar Bengaluru
As global investors are preparing for a ‘funding winter’ and warning their portfolio firms of cost-cutting, startups are looking at different fund raising avenues such as venture debt, according to experts. India has witnessed a series of layoffs and startup valuations are under stress. A growing list of unicorns have fired employees.

According to experts, current macroeconomic and geopolitical factors are reasons for negative sentiments in global markets, including US tech equity market corrections and new-age business IPOs underperforming. Rising inflation rates, tightening monetary policy across geographies, and the Russia-Ukraine war further added to the market volatility. Investors are more careful

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First Published: Aug 24 2022 | 7:05 PM IST

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