(Weekly funding roundup Nov 7-14) VC inflow drops to its lowest level in 2026

Weekly venture capital funding into Indian startups has dipped to the lowest level for the year till now due to a combination of the festive period and a lower number of deals.

The total venture capital funding for the second week of November was just $26 million from 11 deals. In comparison, the previous week saw a total amount of $263 million.

This is the lowest ever VC funding raised by Indian startups on a weekly basis for 2026. Prior to this, the lowest level was in the last week of May when the amount was $66 million.

This development reveals the challenges the Indian startup ecosystem continues to face in raising capital, amid the volatile macro economic environment.

The Indian startup ecosystem still greatly relies on overseas money. The increased trade tension among countries has curbed the flow of capital. However, the bigger challenge is the absence of a credible AI story in the country.

In the major VC ecosystems across the globe, it is the AI segment that has cornered the highest share of capital. This is particularly evident in the US where AI startups have raised a considerable amount of money.

In contrast, India has just a handful number of credible AI startups. This has been one of the key factors for the lower VC funding this year in the startup ecosystem.

The total VC funding for 2026 is unlikely to cross the level of 2025 given the current trends. In 2025, the Indian startup ecosystem raised $12.1 billion. The first ten months of 2026 saw VC funding of $10.4 billion, and the last two months may not see any significant VC activity.