Indian start-ups with strong fundamentals will get funding, says Vinod Khosla

By Team Startupcity  |  Monday, 03 April 2023, 09:42 IST

Indian start-ups with strong fundamentals will get funding, says Vinod Khosla
With Indian startups experiencing striving times amidst funding crunch and mass firings, ace Indian-origin venture capitalist Vinod Khosla says the ones with "strong fundamentals" will continue to be funded, though at lower valuations, a report said. "The wheat will get divided from the chaff," Khosla told, adding that "not so good Indian start-ups" will go kaput this year, resulting in fewer but bigger start-ups.
The Silicon Valley veteran said since these companies don't have to compete with smaller firms, they could end up using their capital more wisely. Khosla's comments come after the collapse of Silicon Valley Bank (SVB) a bolt from the blue for Indian startups that had deposits worth about $1 billion with the besieged institution.
Khosla and ChatGPT developer OpenAI's CEO Sam Altman recently offered personal funds to help startups after SVB's collapse. "We are talking to 100+ portfolio companies evaluating their critical needs and plan to bridge where we are a lead or major investor at our cost of borrowing only or under special circumstances where a company's other investors can't respond," Khosla had said in a tweet.
Clocking multi-billion-dollar valuations in recent years, India has become host to world's biggest startup markets with many foreign investors making bold bets on digital and other tech businesses.
Khosla, who co-founded technology giant Sun Microsystems in 1982, sees India getting the same opportunity as the US, where technology drove a significant portion of GDP growth, and defined the country's global competitiveness. "There is long-term opportunity in India as a major developing country with lots of GDP growth to be captured by start-ups," Khosla told, adding that favorable government policies will help these firms reap benefits.
Pointing at India's unique digital infrastructure that assist cashless transactions, Khosla said: "India Stack, UPI (Unified Payments Interface) and others are good infrastructure for the start-up ecosystem to develop on."

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