How 2020 Was a Masked Opportunity for the Indian Startup Ecosystem
The harrowing pandemic brought by 2020 was detrimental for many industries. However, new opportunities have also sprung up. It is particularly noticeable in the startup sector of the economy. Covid-19 is both a catalyst and a challenge. Here is a look at the main trends observed in India so far.
The New Challenges
The spectacular growth of the startup ecosystem is undeniable. Over the past decade, it has ballooned. In 2019, entrepreneurs raised over $14.5 billion worth of capital in total. This dwarfs the figure for 2010 — a meager $550 million.
Funding of startups halved across the board during the lockdown, according to a recent TiE-Delhi and Zinnov report. Like other businesses, startups saw a wave of layoffs, pay cuts, and shutdowns. Just under half — 40% of emerging businesses were adversely affected, and 15% discontinued operations.
However, there is a silver lining even in times like these. Every crisis is an opportunity in disguise. Startups in India have always had to fight hard to succeed. Now, competition is fiercer than ever, and it has positive effects on the ecosystem overall.
Survival of the Fittest
As competition has intensified, there is little room for mediocrity. This concerns both companies and individuals. Candidates should do their best to get hired or work on their skills and knowledge to become self-employed.