The startup euphoria is fading

By Shajil Kumar, Editor at LinkedIn

The number of new startups is falling. Indians founded around 5,500 ventures in 2019, 35% fewer than in 2018 and the lowest since 2011, BusinessLine reports, citing data from Tracxn. The drop is noticeable across sectors, ranging from fintech to retail to enterprise applications. Experts attribute the decline to fading startup euphoria and rising competition, which acts as a barrier to new ventures. But investments continue to pour in: Tracxn says desi ventures raised $20.5 billion in 2019, the highest in the last five years.

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