A Look Back to Some of the Great Venture Capital Investment of 2021

Venture Capital Investment saw a surge over the years. However, 2021 gave a special boost to it. Reports suggest that the world found growth over multiple streams. Furthermore, investments for startups working in a different sector are just a part of the venture capital investment culture. 

The FinTech industry saw massive support due to the digitalization of payments. Therefore, its investments were more leaning towards it. However, it wasn't limited to it, as the Indian market saw a strong IPO handle that changed the face of investments to a new height. Reports suggest that back in 2020, the global funding never reached $100 billion in a single quarter.

Did startup investing yield any results?

Well, there need not be any questions about the investing results. However, the query of results stands tall. In other words, Startup funding in India did shatter multiple records this year. The Q1 and Q2 were slightly off due to the pandemic hit. However, the Q3 held some outstanding results. 

Some of the names that held firm ground are Nykaa, PolicyBazaar, Zomato, Mobikwik, and more. FinTech corps show the profound existence in the funding returns. The well-known payment service provider PayTM was listed. These are a part of the unicorn companies that found a home in the notable direct listings.

How startup financing provides massive support to FinTech startups?

The FinTech world we mentioned before got a definitive stand. The reason is simple the pandemic made the physical touch a serious "No!". Thus, fintech and financial service startups raised $2.24 billion across 70 deals in Q3, 2021. It had various EdTech, Fintech, and HealthTech companies underwing. There were 70 deals across the FinTech industry that aced these companies. Three major investors aced the investments.

 

The fintech startup Cred's CEO Kunal Shah had 29 deals that brought him to the top list of investors. Sequoia, Kunal Shah, and Titan Capital investment aced more than 80 investment deals. Bangalore is India's Silicon Valley for a reason. Furthermore, Bangalore raised over $6.3 billion across 179 deals. The total amount cumulatively added to the year's investment total. Startup Financing was a major support in the technological advancements for financial institutions.

Which month showed the major startup investing activity?

The trend isn't linear. According to the YourStory statistics, the initial months fluctuated a bit. However, after May, the trend was on the upper side. To answer the question, July 2021 had the major startup investing activity of 159 deals.  These 159 deals accumulated $6,395.84 million as the amount has been undertaken. It means that the seed investors picked the correct time for the investment. 

Why July was the best time?

The reason is quite simple. Soon after the Month, the IPOs were placed, and the returns were whopping the internet all over India. All the investments gave major profits to the seed investors. The sharp increase in the highest numbers made the profit line up to the topmost levels. 

What is the current investor for the business landscape?

The after-effect of the pandemic brought out a huge firm ground to the startups. Many startups are working right now and planning to become a corporate power. Startup financing holds an accord for India as it is on the verge of evolution in the corporate. Not only FinTech but other Tech parts are working hard.

The AtmaNirbhar Bharat or Make In India ideology supported the Startup India and Digital India campaigns. It means that the working of the investments can get support like none other. There is a favorable and nurturing environment as the areas are open for startups. Investing Fund for startups is not just about the potential but the digital market requirements. Multiple policies and funding availability are in support. However, seed investors still play a major role for startup companies.

The Final Verdict

The Q3 showed a tremendous increase in investments and returns. The trends suggest that Q4 will have a similar trend with more public listings. Startup Financing provides major support to startups, and with the current era's digitalization of the market, it is quite a major deal. It is a catalyzing phase for Startups. Furthermore, Startup Investing will be a great support to the post-pandemic era.