Early-stage deals halved in the first 6 months of 2020

Early-stage deals halved in the first six months of the year, while the number of technology businesses that were set up sharply slowed, data shared by venture capital industry tracker Tracxn showed.

Investment rounds in the under-$5 million category fell 50% to 240 deals, while it dropped 33% to 489 deals overall in the first half compared to the same period last year, according to Tracxn data. Total capital inflow also fell to $4.2 billion from $5.7 billion.

The number of technology companies that have been incorporated up to June 15 stood at 449 compared to 3,638 in calendar year 2019, as a slowdown in economic activity due to the Covid-19 pandemic impacted founding of new firms.

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