Experts talking about Startups, the Bubble Is About to Burst | Ecosystem | VARINDIA News Hour

India is amongst the top five #startup ecosystems in the world. According to the India Venture Capital Report 2021 published by Bain and Company, the number of cumulative start-ups has grown at a CAGR of 17 per cent since 2012 and crossed 1,12,000 by December 31, 2021. Start-ups have emerged as key drivers of economic growth and job creation, and are often a catalyst for radical innovation. Now India is home to 79 unicorns, with a total valuation of $260.5 billion, which makes it the third largest after the US and China. Out of the total, 42 unicorns with a total valuation of $82.1 billion emerged in 2021 alone, a record year for the country. Startup valuations are rising thanks to ample capital availability, limited investments with strong yield and related issues. Startups have created immense value for founders and investors alike. The accelerated development of the start-up ecosystem needs significant funding and therefore the role of venture capital and angel investors are critical. There are 32 start-ups founded after the year 2000 and have the potential to turn into unicorns in two years and 54 Cheetahs - potential unicorns in four years.

It is also true that a few highly successful start-ups with astronomical valuations and a few spectacular failures get discussed disproportionately creating the perception of a funding or valuation bubble. Overall, the venture capital asset class has done well for its investors who understand and provide for the high-risk nature of these investments. India has emerged as one of the world's top hubs for startups. With large-scale support from investors and the government, a large number of startups have gone on to become unicorns. However, volatility in the market amid rising geopolitical tensions and the ongoing pandemic has dented the growth of startups. One 97 Communications (Paytm), FSN E-Commerce (Nykaa), .