Q1 Report FY 17-18

Our Startup Team analysed 1000 fundraising companies and 120 funded companies to create the 1st Quarter Report for the financial year 2017-2018.

The Data delivers insights into:

• The kind of sectors that have been funded.
• The comparison between B2B and B2C fundraising trends.
• The interaction between the location and the fundraising trends for startups.

1. Sector

• Healthcare and Fintech are the top funded sectors for Q1 which has become a regular trend now. Education and FnB are the other sector which have seen high number of deals. Surprisingly, Travel and Tourism sits at 4th if we look at number of deals.

• AI, Big Data, IoT and Retail are the least funded sectors in the first quarter.
• Next we compare the percentage of companies on the fundraising and funded side. Green bar shows the percentage of companies raising funds while the red shown the percentage of company funded in each sector.
• Healthcare seems fairly balanced as of now. Fintech, Travel & Tourism and AR/VR are a few sectors where we see an imbalance in supply and demand favoring the supply. On the other hand, Education, Fashion and FnB see more demand than supply.
• Sectors like AI, Big Data, IoT are few sectors which are yet to be matured w.r.t. number of companies getting funded as here also demand exceeds the supply.
• Adtech, Human Resources and Agriculture are few sector where we have seen good demand but unfortunately hardly any funding has happened in these sectors.

2. Market type of companies

• 60% of the fundraises that happened last quarter were B2C which more or less matches the market type distribution of fundraising companies.

3. Location

• 96% of the deals have happened in Tier-1 cities last quarter which is a bit on the higher side as compared to last quarter's 80%. On the demand side, 20% of the companies looking to raise funds where from Tier-2 and Tier-3 cities.

Why are angel investors still not able to drive early trends in the India ecosystem?

Here are some quick highlights of VCs in the “Angel Bucket” from this quarter:

• The sectors or the type of companies VCs show interest in at early strange may drive the angel behavior in near future. Hence we looked at all the deals where we saw participation from VCs at angel level.
• More than 50% of the deals where we saw participation from VCs were in Healthcare and Fintech as they continue to be the hottest sectors in the Indian ecosystem.
• Other sectors which saw funding last quarter from VCs include: Logistics, Enterprise Software, Big Data and Augmented Reality/Virtual Reality.
• This quarter also marks the entry of VCs in the Augmented Reality/Virtual Reality space at angel level.

This was Quarter 1, of the financial year 2017-2018, in a nutshell. Follow the links below for similar previous year’s highlights and Quarter 4 of the Financial year 2016-2017.Hope you found this post insightful, you can tweet to us at @LetsVenturein with any questions.