The article also discusses India's position in the global AI race, with Lightspeed noting that while much of the AI infrastructure is being built in Silicon Valley, there could still be targeted AI opportunities in India. Additionally, the article highlights the growing interest from sovereign funds in India, which Lightspeed MD Anuj Bhargava believes will invest in many late-stage startups. Despite a tightening in late-stage funding, early-stage deals remain a bright spot in India's startup ecosystem.
Key takeaways:
- Lightspeed India Partners' Lift Off summit aims to spark partnerships and investment opportunities among investors, building on the success of last year's inaugural event.
- Despite India's rebound in startup funding, there are concerns about the valuation of companies like Byju's and Paytm, and skepticism about excess fundraising with Indian VCs sitting on a record $20 billion in dry powder.
- Lightspeed partner Bejul Somaia suggests that Indian VC firms may have over-raised funds, and anticipates many firms will take three to four years to deploy their funds instead of the typical two and a half to three years.
- India is lagging in foundational AI research, with most of the opportunity being at the application layer for consumer and enterprise. However, Lightspeed sees potential for targeted AI opportunities in India despite Silicon Valley's dominance in innovation.