TICE Funding Index: Investor Caution Pulls VC Inflows Back to $100M

The Indian startup ecosystem raised $155 million across 29 deals in the week of September 20–26, marking a return to the $100 million range, indicating ongoing investor caution

This decline in venture capital inflows reflects the impact of global macroeconomic challenges, such as US. policy changes affecting H-1B visa fees and tariffs, which have influenced investor sentiment and deal flows.

The week's funding was primarily focused on early and mid-stage rounds, with no large-ticket deals The largest investment was $23 million for Chakr Innovation, a deep-tech startup addressing air pollution.

Other notable deals included Curefoods securing $18 million, Rocket raising $15 million, and Vedantu obtaining $11 million, showcasing continued interest in innovative ventures despite the cautious climate

The overall funding environment remains challenging for late-stage startups, with many postponing expansion or IPO plans due to the lack of big-ticket investments

Founders are adjusting their expectations, focusing on revenue visibility, and managing cash burn more carefully to align with investor preferences for strong fundamentals and shorter profitability timelines

Despite the current challenges, there is optimism for a potential revival in 2026, as global economic conditions stabilize and India strengthens its position in areas like deep-tech, AI, and climate-focused innovation

The message for Indian startups is clear: resilience and relentless innovation are crucial, but significant investor confidence is needed to drive substantial growth in the ecosystem