Despite the rise in Funding, 73% of startups falls in 'Dead Pool'

By Team Startupcity  |  Friday, 05 April 2024, 12:29 IST

Despite the rise in Funding, 73% of startups falls in 'Dead Pool'
When compared to 5,640 startups in the preceding year, the number of startups that have shut down by 73 percent enormously.
As per the data given by Traxn, there are only 1,514 startups have ended up in the ‘dead pool’ in 2023, which means that the startups failed to raise funds in the startup space in 2023. Meanwhile in the year 2021, the number was 4,424. 
Several companies that ended up in the dead in previous years include Niki, Zipgo, GramFactory, FoodyBuddyCherryTin, Crejo.Fun, Crater.Club, FrontRow & many others. 
When compared with the year 2022 with the year 2021, there was a sharp drop of 33 percent in the funding for startups in India, a report from PwC stated. Further the funding for startups have declined across all the stages by 73 percent in 2023. 
Speaking to this decline, Nikhil Parmar, Founder of Impactful Pitch & a prominent angel investor says, “The year 2023 has been a slow year for startups on the funding front. Several factors like geopolitical tensions, inflation, rising interest rates and recession have contributed to a slow growth in the world’s third-largest startup ecosystem,” Nikhil Parmar, founder of Impactful Pitch and angel investor in over a dozen startups”.
Similarly, Anisha Patnaik, Founder & Managing partner at LexStart Partners states, “Additionally, platforms like Shark Tank have played a role in highlighting key focus areas for entrepreneurs, further contributing to their success”.

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