India’s venture capital market is among the top 5 markets in the world, both in terms of value and volume. Between January and April of 2025 the VC funding volume increased by 19% (source). That is not all, overall the Indian VC ecosystem paints an overall positive picture for those looking to tap into it. But, before you do understand these 2025 trends if you want to make the most out of this opportunity.
Top Venture Capital Trends in 2025 to Look Out For
India is slowly becoming the land of startups and entrepreneurs, and these startups are securing foreign investments. The country secured 8% of the global VC deal count and 3% of VC deals by volume. The following are a few rising trends in the venture capital market and how they affect the investors and startups seeking VC funding.
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Small & medium-sized startups are securing more deals
For a long time, venture capital fundraising was somewhat limited to only large-scale startups. For those who established themselves and were active in the global market.
However, in recent years, the scenario has changed, and early-stage VC funding has come into existence. Promising early-stage startups can now secure large-scale venture capital investment. In 2024, 95% of the venture capital deals were small and mid-ticket deals, while the mega deals declined by 20% (source). It indicates that venture capitalists have become more conscious of their investments.
What does it mean for startups?
Well, it opens the gates for small-scale startups with promising products and markets to secure venture capital investment. Growth-stage startups need to highlight their growth and profitability to gain trust and funding from VC investors. When preparing your pitch deck, focus on the growth potential of your startup and financial projections.
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Consumer tech startups are on the rise
We all know that consumers run the market, especially non-business consumers. This is true for the VC funding as well. While tech startups rule the venture capital trends in 2025, consumer tech secures the top spot. These startups cater directly to consumers by offering tech products.
Consumer tech startups are dedicated to offering fast, accurate, and easy-to-access services to a diverse target audience. A few popular consumer tech startups in 2025 are Meesho, Make My Trip, Zepto, Delhivery, and RazorPay. These startups cater directly to customers and resolve everyday problems, gaining fast traction.
What does it mean for investors and startups?
Investors should focus on choosing startups offering a unique solution to a problem that affects many, creating a profitable market. Startups should focus on proper product-market research to find the correct target market and gain better traction to secure venture capital for startups.
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AI startups are growing well
It is no surprise that AI is the new normal, and we are still pushing the boundaries of its ethics and existence. AI startups are among the top gainers in startup funding trends. In 2024, the Indian AI startups secured USD 1.35 billion from the local and global markets (source).
While the AI model developing startups is growing, the startups using AI to solve real-life problems are securing more funding. As per experts, India has one of the largest and most diverse consumer markets. Therefore, AI-use case startups have higher chances of succeeding.
What does it mean for startups and investors?
Investors should focus on AI startups that integrate AI in diverse sectors. Startups should focus on building effective AI solutions to resolve real-life problems and improve efficiency.
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Being a unicorn isn’t your ticket to VC funding
Being a unicorn doesn’t mean funding success is guaranteed. Till now, we have witnessed many unicorn businesses fading away because of competition and changing market trends. Therefore, one of the latest trends in the venture capital market is investment based on the business model rather than the unicorn status.
Two-three years ago, unicorns were at the top of startup funding trends; once you secured the unicorn position, investment came rolling in. However, that trend didn’t age well, and many investors face losses. Therefore, now investors are focused on investing in sustainable startups that adapt to market changes.
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VC choosing the open market as an exit strategy
An exit strategy is an essential part of the VC deal. In recent years, more investors are choosing the open market exit strategy for their venture capital investment. As per the trend book 2025 (source), Indian investors made an open market exit worth USD 12.9 billion through IPO, followed by US$6.7 billion worth of secondary exits and US$3.7 billion of strategic exits. Startups should provide possible exit strategies to investors to gain their trust and develop their growth strategy.
Do you want to know more about such amazing trends in the venture capital market? Events such as Bharat’s Leading Startup Summit, organized by 21BY72, help you get insights on trends and learn about industries and investment from industry and global leaders. You can also check our blogs for more information and understand the latest trends in the Indian and Global startup ecosystem!
Conclusion
2025 comes with many opportunities for startups and investors, especially for venture capital investors. We witnessed a strong start for venture capital investment in early 2025. In this blog, we discussed the top venture capital trends in 2025 that investors and startups should understand for better investment and growth.
From the rise of small & mid-ticket-size deals to open-market exit strategies, venture capital firms are becoming more thoughtful about their investment. Startups focused on consumers, sustainability, and performance are likely to succeed in venture capital fundraising.
FAQs
1. What are the venture capital trends for 2025 in India?
The venture capital trends in 2025 are focused on sustainability and traction rather than hype and valuation. The investors are opting for small ticket deals with growth opportunities, investing in sustainable startups, and open market exit strategies. The VC firms are focused on tech startups, especially ones incorporating AI and catering to consumers.
2. How can a startup attract venture capital investment in 2025?
To succeed in venture capital fundraising, you need to stay updated on VC trends and create a pitching strategy around them. For 2025, VCs are making small and mid-ticket-sized investments in tech, AI, and sustainable startups. Additionally, they focus on startups with a scalable and reliable business model rather than their valuation alone. So, keep these points in mind when creating a strategy. If you want to learn more about venture capital trends, you can attend our startup event with global attendees! We hold panel discussions on various topics to help you get insights into the startup ecosystem.
3. How to choose the right VC firm for funding?
Choose a VC firm that has relevant experience in your field, a good portfolio, a reliable team, and a good market reputation. Ensure that their values align with yours.
4. Which are the top sectors for VC funding in India?
AI, fintech, health tech, agritech, EV, and hyperlocal delivery are a few popular sectors and models that secure VC funding in India.
