New Delhi, Dec. 29 -- After two years of muted deal-making and flat funding levels in 2025, venture capital investors expect 2026 to usher in a steadier, though more selective, phase for India's startup ecosystem.

A strong IPO market this year has unlocked liquidity for funds, encouraging investors to prepare for higher capital deployment next year, particularly into artificial intelligence (AI) and deeptech startups that demonstrate scale, revenues, and clear paths to profitability.

Shift Towards Fundamentals

Investors are moving away fr0m chasing headline Annual Recurring Revenue (ARR) milestones and high valuations, focusing instead on fundamentals such as retention, unit economics, and real customer demand, reported FE.

Aditya Sin...