Venture capital crunch will hit India harder than U.S., China

Startups face valuation hangovers and fewer public fundraising options

20230511 Daily life in Mumbai

In India, as in many countries across Asia, these are volatile times for startups and the alternative investment firms that back them in the private markets. © Getty Images

HENNY SENDER

The Indian venture capital world is finding out that too much money can be as much of a curse as too little.

In India, as in many countries across Asia, these are volatile times for startups and the alternative investment firms that back them in the private markets. A boom fed by 15 years of negative real interest rates ended last year. Rising interest rates have hit private equity and venture capital firms hard because cheap debt is at the heart of their business model.

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