India, Oct. 8 -- Late Stage VCs Turn Risk Averse In Q3

Indian startup funding stabilised in Q3, but investor appetite split sharply. The quarter saw capital deployment skew heavily toward mid to growth stage startups while mature, late stage ventures faced headwinds. So, is the Indian startup funding engine re-wiring itself?

The Growth Mania: Growth stage funding zoomed 46% YoY to $1.1 Bn in Q3, with median ticket sizes up 4% YoY to $8.3 Mn. This was driven by a surge in early stage domestic funds and expanding pipelines from micro VCs. Besides, investors also favoured mid-stage startups because the latter offer significant headroom for expansion and lower valuation risk.

The Late Stage Dip: Conversely, late stage funding stalled at $9...