The ongoing AI boom is creating a stark divide in the startup funding landscape, with AI ventures attracting substantial investment while non-AI startups struggle to secure funding. Reports indicate that non-AI companies, particularly those that raised Series A funding 18 months ago, are facing challenges in obtaining Series B financing despite showing decent revenue growth. In contrast, the Indian startup ecosystem has seen a marginal increase in total funding for 2024, reaching $11.3 billion, compared to $10.7 billion in 2023, largely driven by late-stage funding. However, seed-stage deals have declined by 50%, with only 925 transactions recorded. Overall, Indian startups raised 32% fewer funding rounds in 2024 as venture capitalists became more selective.