With more than half of 2016 already over, the NCR startup scene seems to be looking forward to a dull year, funding wise. According to a recent report, the funding activity in the country's national capital region has seen a steep fall from previous years with just 155 transactions being signed for $170 million so far in 2016.

According to data from 'VCCEdge Startup Funding Insights', the NCR startup ecosystem has been witnessing a funding crunch so far in the year 2016, and has attracted just $170 million (approx Rs 1,140 crore).

The report also mentions if the funding graph remains the same, then the NCR startups funding deals for this year will most probably not even be able to cross the $289 million fundings figure of the year 2014.

The year 2015 was kind of a landmark year for the ecosystem as it had managed to attract deals worth $608 million, a figure which was much more than 2014's $289 million. But, the funding pace of 2016 is signalling towards a three year low figure for the NCR startup ecosystem.

According to industry experts, there are a number of reasons for this declining funding trend currently being witnessed by the NCR startup industry. According to them, the investors have now become more careful and selective than ever. They are now being more attracted towards the startups that have a feasible business model for best utilisation of the funds that they would receive, and not just being bowled over by an out-of-the box idea. They now want a great idea along with an even greater plan to execute the idea.

"The slowdown is attributed to investor pragmatism and selectiveness in funding enterprises that have business models that best optimise the funding they receive. Startups have to, perforce, 'Conserve and Grow, or Perish'," said News Corp VCCircle's CEO Nita Kapoor in a statement.

According to the report, since the year 2011, the NCR startup ecosystem has been successful in registering a total of 873 funding deals worth $1,571 million of the total all India figure of $6,721 million across 3,682 deals. This means, the NCR startup ecosystem accounted for 24% of the total number of deals and 23% of the total deal value.

The food-tech space has been able to attract the most number of deals since the year 2011 by locking in 50 investments worth $28 million. While, the travel technology sector has seen the maximum fund flows by registering 46 deals worth a whopping $80 million since 2011.

[Top Image - Shutterstock]

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