Growth pattern and trends in startup funding in India

Abstract

This paper presents the trend and growth pattern of startup ventures, their types and different stages of funding in India. The prime objective of this research was to study growth pattern of the startups and stages of funding received by these startups. The analysis has shown Indian start-up companies prefer primarily funding in four different stages, such as early stage, growth stage, expansion stage and bridge funding. The result has also shown that maximum funding was received in the expansion stage in the financial years. Bridge funding is becoming more and more prevalent, almost 10 per cent of deals. Further, it is noticed that the entrepreneurs find financial support from other funding sources, after the initial experimental phase. The results of chi-square test revealed that there is no significant association between stages of funding and level of development of startup. Further, the test also revealed no significant association between financing methods and professional qualification of promoters of startup.