Mr. Rajeev Ranka, Partner at Incubate Fund Asia
In the context of the gradually fading Funding Winters, Incubate Fund Asia remains optimistic about innovation. Recent market shifts have led investors to prioritize startups with robust economics, a well-defined problem-solution fit, and resilient business models. Recognizing the evolving market reality, securing funding now demands startups to concentrate on their core value proposition, traction, and with high capital efficiency. Transparency, strong corporate governance, and a compelling narrative play pivotal roles in building trust within the current funding landscape. To adapt to these changes, startups should consider exploring alternative funding sources such as domestic family offices, venture debt, and corporate venture capital to create a diverse fundraising mix. By remaining adaptable and agile, we are confident that startups can not only survive but thrive in this dynamic environment.
Additionally, at Incubate Fund Asia, our enthusiasm for emerging trends shaping the future is unwavering. Some of our portfolio companies and many others have raised subsequent funding rounds in a tough funding environment like this which is a testament of the quality of entrepreneurship in India . Fueled by the digital financial ecosystem in the region, Fintech, Consumer tech, B2B and deep-tech sectors like AI and big data, hold significant promise. We continue to invest across these broader themes with our newly raised Incubate Fund Asia 3. Investing across five regions (Japan, US, SEA, Latam and India) and cultivating sector-specific expertise enables us to offer valuable support to our portfolio companies. In this era of post-Funding Winters, the Investor focus has moved strongly to factors such as unit economics, profitability pathways, and long-term sustainable growth potential. Sectors that showcase resilience and innovation, such as B2B, climate-tech, Fin-tech and consumer tech, remain in our spotlight with businesses exhibiting strong fundamentals and value creation for all stakeholders.
