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October 21, 2016

A 9Mth Analysis of VC Investments: Mint

Other observations from the article:
  1. The decline in India is synchronous with the Asian decline - "Compared with the $1.6 billion invested in the first nine months of 2015—January to September—venture capitalists invested a little more than $1 billion in the same period this year, a decline of around 36%" in India compared to "a 31.3% decline from the preceding quarter and a 63.9% decline from the corresponding quarter last year in terms of dollars invested" in China. "Venture capital-backed firms in China drew $3.9 billion across 84 deals in the third quarter of 2016. There was a decline of 29% from the corresponding period last year in Asian (region)."
  2. For the first time in India, the total value of exits, exceeded the total value of investments in the first nine months of 2016 - $1.03 billion worth investments vs. exit deals worth $1.4 billion.
  3. Non-tech companies have also driven exits - Since January 2015 till date, venture capitalists have delivered 73 technology exit deals worth $1.7 billion at a median return multiple of 4.2 times the original capital invested. By comparison, investors struck 46 non-technology exits worth $1.2 billion and delivered a median return multiple of 3.1 times the original capital invested.
  4. Series A crunch - Series A plunged 55% to $344 million, compared with the same period last year. Fewer companies have also gotten funded—the number of deals are down 47.8%.
Catch the article titled Seeking an exit route.

Venture Intelligence is India's longest serving provider of data and analysis on Private Company Financials, Transactions (private equity, venture capital and M&A) & their Valuations in India.