The economic slowdown in India and global macroeconomic uncertainty seem to have prompted venture capital (VC) investors to take a cautious approach after pumping in record amounts of capital so far this year, investors, entrepreneurs and lawyers said.
While capital is still flowing into startups, the number of such companies getting funded is little changed, if not falling, indicating investors have become more guarded in their approach. For the few deals that are being closed, venture investors are now taking longer to scrutinize investments, a partner at a venture capital fund said, requesting anonymity.
