Opportunity or Bane? Studying the Impact of Covid-19 Pandemic on the Venture Capital Industry in India

Abstract

Covid-19 is transforming the way business is conducted. Innovative ideas and solutions to solve existing problems and the ones that have come up due to the pandemic are being encouraged. All this is not possible without adequate funding to these new ideas. The paper attempts to understand the changing paradigm of capital provided in India to new ventures due to the pandemic. The trend shows that overall entrepreneurial funding has increased when compared to the last 2 years, although majority of this has been garnered by two existing matured companies. The pandemic comes as an opportunity for the sponsors to cherry pick and hunt for a better bargain. The venture capitalists are funding those portfolio companies which have a higher rate of survival.