Even as venture capital flows into startups pick up, more than $10 billion in committed capital is still sitting on the sidelines. The paradox underscores a shift in investor behaviour rather than a funding slowdown. Investors, industry executives say, are becoming far more selective about where they deploy capital. Many prefer late-stage companies with visible traction, or are placing early bets at the pre-seed stage. Meanwhile, emerging sectors such as artificial intelligence and deep tech are cornering a disproportionate share of fresh money. As Abhishek Prasad, managing partner, Cornerstone Ventures, says that while there are opportunities, strong business models remain central to their investment decisions.