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Start-up funding rises slightly, but investors warn of volatility

September 29, 2022

Start-up funding rises slightly, but investors warn of volatility
After four months of decline, the funds flow into startups increased slightly in September to $1.54 billion from the previous month’s $1.25 billion, according data sourced from Tracxn. Investors, however, said the marginal improvement should not be seen as a sustainable trend.

Most of the funds flow in September was to the late-stage companies, which were the most affected in the previous month. These firms raised about $871 million during the month against $621 million in August.

The early and seed-stage firms, however, showed little improvement. Early-stage firms received about $552 million in September, while seed-stage startups got just $77 million. While funding in early-stage was higher from last month’s $478 million, the same for seed-stage was lower from previous month’s $97 million.

In April, the month just before the slowdown set in, prominent, late-, early- and seed-stage firms got $4.21 billion, $1.1 billion and $185 million, respectively.

“The September data does not establish that things will move in the positive direction hereon as there’s going to be more volatility going forward. We should watch the trend for another quarter, if data continues to show improvement, we can say the positive trend is sustainable,” Ashish Kumar, co-founder and general partner, Fundamentum Partnership, said.

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