The New Year has not been very welcoming to the startups which have been so far grandiosely supported with huge funding by investors. Over 7 billion dollars were invested on startups last year that led to the sudden upsurge of entrepreneurs from all corners of the country. Investors are no more enthusiastic about shedding their dollars for startups as many of the startup companies have failed when it comes to a functional and effective revenue model. However the first round funding will continue to be generous to all startups as last year.  Many startup companies are facing huge issues when it comes to the growth and development of the company, functioning and cost management.

What happened with photography startup Canvera?

During a funding even that took place in the month of December, photography startup Canvera compromised with a large decrease in its value. This is not a very good sign for the startups, and the entrepreneurs are growing aware and cautious about this downround.

With investors sieving and monitoring the amount of money flowing to these startups, many companies like housing.com and Canvera are suffering a major setback. Investors are now shifting their interest to technology based companies that find both local and global markets.And also companies that cater to the specific needs of the people including education, finance and other services are also likely to win the support of the investors. And now, it is high time for the new entrepreneurs to step in to a long term plan so as to cope with this funding crisis.