Artificial intelligence and fintech most overhyped sectors in India: Survey

Artificial intelligence and fintech most overhyped sectors in India: Survey
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Artificial intelligence and fintech most overhyped sectors in India: Survey

The majority of Indian startups expect to have a difficult year on the fundraising front while mergers and acquisitions (M&A) are their preferred mode of exit, according to a survey conducted by venture debt firm InnoVen Capital. 

The India Startup Outlook Report 2018 presented insights from more than 100 startup founders and top executives across sectors and at various stages of growth.

More than half of the respondents felt the fundraising environment would be more challenging in 2018 as compared to the previous year, for which around the same numbers found the fundraising experience to be favourable. Only 37% had found the climate to be favourable in 2016.

Founders said they had pitched to six to ten investors on an average to close a funding round.

Among others findings of the survey, 41% of the respondents said that their cash burn rate was now lower as compared to the year before, an improvement on the 34% in 2017.

For venture capital-backed entrepreneurs, hiring a good chief technical officer was among the biggest challenges. For early-stage startups, finding sales heads and chief marketing officers were more pressing concerns.

Respondents identified raising equity funding as their primary challenge this year, particularly in e-commerce and fintech. Recruitment was second on that list.

Enterprise tech startups were mostly concerned about customer acquisition, customer churn, and talent management, while healthcare and logistics startups faced more challenges on the market creation and talent management fronts. 

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