India’s venture capital (VC) landscape is exercising caution in funding startups despite an increase in capital raised—$2.5 billion in 2024 compared to $1.9 billion in 2023. Overall VC investments reached $10.9 billion, up from $9.6 billion last year. However, deal activity remains subdued, with early-stage investments being led by smaller funds due to larger investors like Tiger Global and SoftBank stepping back. This shift has prompted a churn in the industry, with many senior executives moving to new ventures. Micro VCs are increasingly filling the gap, capitalizing on the evolving market dynamics and the need for specialized investment expertise.