India, Jan. 25 -- After the funding winter, India's startup ecosystem has settled into what investors increasingly describe as a "new normal". In 2025, private funding stabilised but still remained restrained, with startups raising about $11 Bn across 936 deals, an 8% decline year-on-year and a fraction of the capital deployed during the peak years of 2021 and 2022.

As startups operate in a more disciplined funding environment - shaped by tighter capital, slower scale-up cycles, and rising public market scrutiny - policy clarity has become increasingly consequential.

Taxation and regulatory certainty now play a larger role in shaping fundraising outcomes, employee compensation structures, and the viability of research-led businesses tha...