More Funding Needed for Startups, AI to be Significant in the Future
Significant resources and funding is needed to create a strong impact in the startup ecosystem artificial intelligence (AI) starts to play a more significant role, Vineet Rai, Founder and Chairman of Aavishkar said on the sidelines of the recently-concluded Sankalp Bharat Summit in Varanasi.
The Global Impact Investing Network defines impact investing as investments “made into companies, organizations, and funds with the intention to generate a measurable, beneficial social or environmental impact alongside a financial return.” At the core of it, impact investing is largely about aligning the investors’ beliefs and values with the subsequent allocation of funds and solving social and environmental issues.
According to the Impact Investors Council (IIC) research, India saw USD 2.9 billion worth of equity investments made toward 275 impact companies, a significant decrease from 2022 with USD 6 billion. However, the slowdown witnessed in the global venture capital climate does not indicate the proposition that India, as an attractive investment destination continues to offer.
Climate startups have played a big part in the world of impact funding, with the onset of climate change being one of the biggest results of global warming. Kushal Agrawal, Partner at Lightrock said that climate is not the only part of impact but rather a subsection. “While we do have specific products focused on climate, Lightrock as a whole focuses on all aspects of impact. We have typically defined ourselves as people, planet, and productivity.”
Lightrocket’s portfolio features companies like Porter, a company which has had significant impact on the truck owner or the small-cargo fleet economy. Since its introduction, small-medium truck owners have benefited from access to clients and gigs through its app which has changed the way these fleets operate.
Lightrock has a total investment portfolio of over USD 1 billion across sectors like healthcare, education, and financial inclusion. The firm’s portfolio spans Europe, India, Africa, and Latin America with impact outcomes in areas such as sustainable agriculture and clean energy.
Despite the slowdown last year, 2024 has shown that business models that address critical problems attract interest from investors. With a population exceeding 1.4 billion, out of which 60 per cent are rural, the scope remains immense for companies to innovate and create impact within the country.
Rai of Aavishkar Group said that as an investor, it is more of a responsibility without choice to see if the community can play a role in actually addressing the needs of the climate or climate issues.
Lightrock has a total investment portfolio of over USD 1 billion across sectors like healthcare, education, and financial inclusion. The firm’s portfolio spans Europe, India, Africa, and Latin America with impact outcomes in areas such as sustainable agriculture and clean energy.
Despite the slowdown last year, 2024 has shown that business models that address critical problems attract interest from investors. With a population exceeding 1.4 billion, out of which 60 per cent are rural, the scope remains immense for companies to innovate and create impact within the country.
Rai of Aavishkar Group said that as an investor, it is more of a responsibility without choice to see if the community can play a role in actually addressing the needs of the climate or climate issues.
Read the full article: https://www.entrepreneur.com/en-in/news-and-trends/more-funding-needed-for-startups-ai-to-be-significant-in/483776
