‘Funding forecast for startups in 2016’ – ‘Entrepreneur’ Blog
Kashyap Deorah says, “Thousands of US-based Internet startups have gone public since the beginning of the Internet two decades ago. Hundreds of Chinese startups have gone public in the domestic and foreign markets during the same time. For every Internet startup that has gone public, there are about 10 that have been acquired by them, thus providing exits to shareholders by way of cash or shares that can be traded for cash in the public markets.
How many Indian Internet startups have gone public in Indian or US markets so far? Wait for it. The answer is same as the number of fingers in one hand. In fact, no Indian Internet startup founded after the dotcom bubble burst of 2000 has gone public yet.
Liquidity is as essential to an asset class as water is to life. Liquid returns on investment continue to be a far out promise by Indian startups. Expect a slowdown in the inflow of investments in 2016 until there are exits“.
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