Despite AI bubble concerns, venture capital firms and governments are actively supporting early-stage startups through new funding initiatives and policy changes [1]. These efforts span various sectors, from AI and fintech to healthtech and green hydrogen, reflecting a broad commitment to fostering innovation and growth [8, 10].
Funding Initiatives and Investment Trends
Sequoia Capital has introduced $950 million in new early-stage funds, demonstrating a continued focus on "outlier founders" despite market fluctuations [1]. Prosus has partnered with Accel to invest in "day zero" startups in India, signaling a willingness to engage with companies at their earliest stages [15]. Green hydrogen startup Hydgen secured $5 million in pre-Series A funding to boost R&D and market expansion [8]. These investments highlight the ongoing interest in disruptive technologies and the desire to capitalize on emerging opportunities. In the fintech space, B2B software, particularly ‘CFO tech’, is gaining traction, driven by the increasing adoption of AI tools in finance [10]. Intuit Ventures sees a favorable environment for exits through IPOs and M&A, encouraging VCs to return capital to their limited partners [9].
Government Support and Policy Shifts
Governments worldwide are implementing policies to support startup ecosystems [7]. Korea's National Tax Service (NTS) is providing tax relief to 4,800 AI startups and SMEs, aiming to position the country as a top AI powerhouse [3]. This initiative simplifies compliance and prioritizes R&D tax credits to improve liquidity for early-stage firms [2]. The Ministry of SMEs and Startups (MSS) in Korea is also strengthening its U.S. presence by opening a Startup & Venture Campus (SVC) in Silicon Valley [14]. This campus will serve as a gateway for Korean startups to enter the U.S. market, build investor relations, and commercialize their technologies [13]. Odisha, India, is seeing substantial startup growth, with the number of DPIIT-recognized startups increasing nearly sixfold since 2021 [6]. Abu Dhabi is also reinforcing its position as a global launchpad for life sciences with a dedicated ecosystem supporting clinical validation and market access [4].