BusinessWire India
Gurugram (Haryana) [India], March 23: Eximius Ventures, India's first dedicated pre-seed VC fund, today released its latest report, India's Pre-seed Startup Landscape 2026, offering a comprehensive view of the country's evolving "first cheque" ecosystem. Developed in collaboration with 1Lattice, their research partner, the report is underpinned by robust data and analytical rigor, and captures how early-stage investing is becoming more disciplined, execution-focused, and structurally critical to venture outcomes.
At a time when late-stage funding remains cyclical, the report highlights that pre-seed has emerged as the most resilient and fastest-growing segment of venture capital in India, expanding nearly 3X since 2020 and being the only stage to show consistent year-on-year growth in 2024-25.
"The Indian startup ecosystem is at a defining inflection point. As outlined in our report, capital is no longer converging; it is fragmenting, demanding far greater precision and conviction at each stage. This shift is most visible at the pre-seed stage, which has scaled nearly 3X since 2020 and remains the only stage seeing consistent YoY growth. Yet, with fewer than 20% of startups reaching Series A within four years, the 'first cheque' is no longer just catalytic, it has become a critical filter for founder quality, capital efficiency, and early execution discipline," said Pearl Agarwal, Founder & Managing Partner, Eximius Ventures.
"The pre-seed segment in India is witnessing a fundamental shift, from being purely exploratory capital to becoming a critical filter for quality. With a fivefold increase over the last five years and continued growth even in a subdued funding environment, it stands out as the most resilient stage in the ecosystem. The rising presence of second-time founders further reinforces this shift towards stronger execution and more disciplined venture building," said Devmalaya Mukherjee, Director, Financial Investors, 1Lattice.
India continues to be the third-largest startup ecosystem globally, with over 200,000 recognized startups. However, the report identifies a critical structural challenge, fewer than 20% of startups successfully transition to Series A within four years, underscoring the importance of stronger early-stage support.
India's Startup Funnel is Expanding, But Graduation Remains Limited
While startup creation in India continues to accelerate, the journey from idea to scale remains highly selective. The report emphasizes that pre-seed capital is no longer just early funding, it is a critical filtering and enabling layer that determines long-term success.
Investors are increasingly prioritizing execution discipline, early traction, and monetization clarity even at the pre-seed stage, marking a shift from the earlier "growth-at-all-costs" approach.
Rise of Micro-VCs and Operator-Led Funds
A key trend shaping the ecosystem is the rapid rise of micro-VCs and operator-led funds, with participation growing nearly 4X since 2021. These investors are writing smaller, high-conviction cheques while offering hands-on operational support.
Additionally, former founders are entering venture capital as operator-investors, bringing execution expertise and founder empathy into early-stage investing.
Tier-2 India Emerges as a Major Startup Hub
The report highlights a significant geographic shift, with nearly 50% of DPIIT-recognized startups now originating from Tier-2 and Tier-3 cities.
Cities such as Indore, Jaipur, Kochi, and Surat are emerging as innovation hubs, driven by localized problem-solving and access to digital infrastructure. This decentralization is expected to define the next wave of Indian entrepreneurship.
Repeat Founders & Execution track record gets rewarded
Experience is increasingly valued in early-stage investing. The report finds that ~45% of seed-funded founders are repeat entrepreneurs, who are able to raise significantly larger funding rounds compared to first-time founders.
This trend reflects a growing investor preference for execution track record and capital efficiency.
Domestic Capital Gains Momentum - Rise of New Backers of Ideas
The report also notes the increasing role of family offices, with over 300 entities managing approximately $30 billion in assets, gradually increasing their exposure to venture investments.
This signals a broader shift toward domestic capital formation, strengthening the resilience of India's startup ecosystem amid global funding fluctuations.
Pre-seed as the Structural Entry Point for Venture Capital
Eximius Ventures positions pre-seed as the architectural layer of venture building, where founders validate ideas, build initial teams, and establish the foundation for future growth.
With the highest risk-reward potential, pre-seed investing is becoming central to how venture capital captures long-term value.
Access the Full Report
Read the complete report here: Link
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