Start-up funding: Health, climatetech to attract more investments in H2 2024
BENGALURU: After facing funding headwinds, the start-up ecosystem has started attracting funds again, and according to Venture capitalists (VCs), the second half of this year will attract more investments, especially in healthtech and climatetech start-ups.
Market intelligence platform Tracxn co-founder Neha Singh recently said even with the slowdown seen in March quarter, we anticipate the bounce back quickly. The report by Tracxn said that Retail, FinTech, and Enterprise Applications were the top-performing sectors in Q1 2024.
Pankajj Ghode, Managing Director at Pushttie Venture Capital said Q2 2024 brings forth a fundraising scenario ripe with innovation and resilience.
“Investors are showing renewed interest in sectors poised for exponential growth. Fintech remains a darling of the investment community, as start-ups leveraging technology to revolutionise banking, payments, and financial inclusion attract substantial funding.He added that healthcare technology start-ups are experiencing a surge in investor confidence. Sustainability and climate tech start-ups are gaining traction, reflecting a growing awareness of environmental issues and the urgent need for eco-friendly solutions. Investors are also increasingly drawn to start-ups addressing climate change, renewable energy, waste management, and sustainable agriculture.
“Looking ahead, the start-up trend in India over the next six months is poised to be characterized by a continued focus on innovation, digital transformation, and resilience,” Ghode added. Recently, healthtech start-up Ultrahuman raised $35 million in a Series B funding round.
A study by CIEL HR reveals a significant 74% employment surge in healthtech over the last two years. With a projected employment growth of 15-20%, the sector is expected to witness a surge in demand for skilled professionals across various domains.
Ankur Mittal, co-founder, IPV said, “Fundraising scenarios for Indian start-ups should start seeing positive trends over the next 6-9 months as growth / late-stage funding picks momentum. As momentum starts coming back, businesses that were able to build strong business and achieve growth over the last 12 months of funding winter should attract investors.”
However, Ravi Teja Gupta, Founder, Guptaji Invests says VCs and private equity (PE) firms are increasingly targeting traditional businesses in untapped markets rather than solely focusing on innovative start-ups.