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Showing posts from January, 2017

Double Take on Donald Trump: The Frail Ego & The Negotiator

Extracts from "Black & White and More"  by  Raj Nair, Chairman, Avalon Consulting which discusses the impact in 2017, of the 3 Black Swan events of 2016: Brexit, Trump’s Presidency and Modi’s demonetization (emphasis ours):
There is enough material to understand Trump’s DNA including his own book, “Art of the Deal.” He displays a megalomaniac exterior to cover his insecurities and his very vulnerable ego. He is more a deal maker than a leader. ...He recommends and also uses ‘hope’ and ‘fear’ most of the time to soften his counter party or his own people to accept his proposition and then sells them a grand dream which is beyond their stretch, to win them over. The electorate lapped it up. He gave them some hope and a lot of fear during his campaign. He will continue to do that with counterparties in negotiations.His ego is easily punctured and vengeful acts are par for the course. ...It is therefore safe to conclude that eventually, Trump’s bite as the President will be …

IDG Ventures India closes Rs $200 M fund: Economic Times

An ET article quotes Venture Intelligence data of VC fund raising in India: Led by local affiliates of Silicon Valley heavyweights, Sequoia Capital and Accel, VC (with) funds dedicated to India raised $2.2 billion in 2016, up from $1.5 billion in the previous year, according to Venture Intelligence. Another VC fund which made a final close in 2017 was Saama Capital, which mopped up $58 million for its third fund. 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.


Bombay Stock Exchange: PE Backed IPO Analysis

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.

Don't Raise Money From VC In First Round Seed Stage

In a Linkedin article, one of India's most active angel investor Sanjay Mehta advises startups not to raise seed funding from VCs for the following reasons: There is reluctance among new investors at Series A if the VC at seed stage doesn't participate. " For start-up if the VC firm decides not to write the second cheque Series A then it's sure shot curtains for that business as NO other VC firm in the town is going to write that second cheque.."Startups can have "enough & more expertise, face time and mentoring" from the lead angel investor as "Seed stage first cheque funded companies will never be a priority for a VC firm."VCs are more willing to write off investments than angel investors as "losing money is accepted norm for the VC firm with the seed stage first cheque invested companies". ".. VCs are playing a high-stakes all-or-nothing game."Raising a seed round from VCs denies entrepreneurs "the only opportun…

PE investors may go slow on startup funding: Forbes

A Forbes article quotes Venture Intelligence data on venture capital investments: In 2016, as many as 620 transactions were sealed in the PE/VC space, according to data available with research firm Venture Intelligence. Of this, about 65 percent comprised startup investments. In 2015, the year that created history for the highest amount of PE and VC investments, both by value and volume, of the total of 775 investments sealed in the January-December period that year, 512 were startup deals. 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.

Financial Sector Reforms – Developments and Opportunities

Analysis by
In past one year the Government has put in motion a number of reforms with the intent to attract more foreign direct investment in India and simplify ease of doing business in India. As the year draws to a close, we look back upon the pivotal developments in financial laws effected or proposed during the year. Although there are several areas which could be discussed, such as, change in securities law, land bill, etc; in this article we have covered a brief overview of the developments in (i) corporate bankruptcy laws, (ii) debt restructuring and (iii) foreign direct investment policy.
Corporate Bankruptcy Laws
The corporate insolvency procedure is presently covered under the Recovery of Debt Due to Banks and Financial Institutions Act, 1993, Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act (SARFAESI) 2002, the Companies Act 2013 and Sick Industrial Companies (Special Provisions) Act (SICA), 1985.  Under different laws, diffe…

Mint-Venture Intelligence Deal Tracker (Jan 16)

Venture Intelligence is powering the (Weekly) Deal Tracker on The Mint. The Weekly update is usually featured in the Deals Section (Page 3) on every Monday.

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.

Wydr raises Series A from Stellaris, Bessemer and Jungle Ventures: Forbes

A Forbes article quotes Venture Intelligence data on PE/VC investments in India: The funding signals how risk capital investors are still betting big on the burgeoning startup ecosystem. In 2016, as many as 620 transactions were sealed in the PE/VC space, according to data available with research firm Venture Intelligence. Of this, about 65 percent comprised startup investments. In 2015, the year that created history for the highest amount of PE and VC investments both by value and volume, of the total of 775 investments sealed in the January-December period that year, as many as 512 were startup deals. 
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.

FDI outflows matches FPIs’ in volatility: Economic Times

An Et article quotes Venture Intelligence data on PE/VC Exits in 2016: In the April-November period, PE exits were valued at $4.8 billion, according to industry data tracking firm Venture Intelligence. 

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.

Cyril Amarchand Mangaldas Tops League Table for Legal Advisors to M&A Transactions in 2016

J Sagar Associates, AZB & Partners claim the No.2 & No.3 slots

Cyril Amarchand Mangaldas(CAM) topped the Venture Intelligence League Tables for Legal Advisors to M&A transactions in 2016 advising deals with a value tag of $25.8 billion (across 38 qualifying transactions). CAM was followed by J Sagar Associates(JSA) which advised deals worth $15.5 billion (across 37 deals) and AZB & Partners ($13.8 billion across 50 deals).
The Venture Intelligence League Tables, the first such initiative exclusively tracking transactions involving India-based companies, are based on value of PE and M&A transactions advised by Transaction and Legal Advisory firms.
CAM advised M&A deals during the period included the merger of Max Life and HDFC Life and the $1.4 billion acquisition of cement assets of Lafarge Holcim by Nirma. Transactions advised by JSA included the $1.6 billion acquisition of a majority stake in telecom tower arm of Reliance Communications by Brookfield and the a…

Arpwood Capital tops Transaction Advisor League Tables for M&A Deals in 2016

EY, Standard Chartered Bank take no.2 and no.3 slots; EY, PwC top inclusive of due diligence services


Arpwood Capital topped the Venture Intelligence League Tables for Transaction Advisor to M&A transactions for 2016 advising M&A deals worth $11 billion (across four qualifying deals) followed by Ernst & Young ($8.5 billion across 13 deals) and Standard Chartered Bank ($7.7 billion across four deals).
The Venture Intelligence League Tables, the first such initiative exclusively tracking transactions involving India-based companies, are based on value of PE and M&A transactions advised by Transaction and Legal Advisory firms.
Arpwood Capital advised M&A deals during the year included the acquisition of Essar Oil by Rosneftat an enterprise value of $13 Billion and the merger of Max Life and HDFC Life. Ernst & Young advised deals included the merger of wireless business of Reliance Communications with Aircel and the $23 million acquisition of online poker service ad…

Shardul Amarchand Mangaldas tops Legal Advisor League Table for PE deals in 2016

AZB & Partners, Cyril Amarchand Mangaldas claim the No.2 & No.3 slots


Shardul Amarchand Mangaldas (SAM) topped the Venture Intelligence League Table for Legal Advisor to Private Equity Transactions during 2016. SAM advised PE deals worth $6,500 million (across 47 qualifying deals) during 2016. AZB & Partners ($5,778 million across 58 deals) and Cyril Amarchand Mangaldas ($3,243 million across 34 deals) followed next. J Sagar Associates ($2,378 million across 28 deals) and Samvad Partners ($2,082 million across 43 deals) completed the top five for 2016.
The Venture Intelligence League Tables, the first such initiative exclusively tracking transactions involving India-based companies, are based on value of PE and M&A transactions advised by Transaction and Legal Advisory firms.
SAM advised its Canadian PE firm client Brookfield on the $1,630 million acquisition of a majority stake in telecom tower arm of Reliance Infratel and the $1,000 million acquisition of office and r…

SBI Capital Markets Tops League Table for Financial Advisor to Private Equity Transactions in 2016

Unitus Capital tops by deal volume; PwC, EY top table inclusive of due diligence & other services

SBI Capital Markets claimed the top position in the Venture Intelligence League Table for Transaction Advisor to Private Equity deals in 2016 acting as financial advisor to three qualifying PE investments worth $2,030 million. SBI Caps which advised the $1,630 million acquisition of tower assets of Reliance Infratel by Brookfield was followed by Ambit Corporate Finance ($1,645 million across two deals) and UBS Securities ($1,630 million across one deal). All the three investment banks were advisors to the biggest PE deal of 2016: the $1,630 million acquisition of telecom tower assets of Reliance Infratel by Brookfield.
The Venture Intelligence League Tables, the first such initiative exclusively tracking transactions involving India-based companies, are based on value of PE and M&A transactions advised by Transaction and Legal Advisory firms.
Kotak Investment Banking ($825 million a…

PE/VC investments in auto components hits all-time low in 2016: Business Standard

A Business Standard article quotes Venture Intelligence data on PE/VC investments in the Auto components space: According to Venture Intelligence data, PE and VC investors invested $38 million in 2016 as against $144 million in 2015 and $158 million in 2014. The value of investments stood at $58 million and $633 million in 2012 and 2013 respectively. The year 2013 was a blockbuster year for auto component industry with KKR making an investment of $460 million in Alliance Tire Group. Top deal in 2016 was $17 million, lowest since 2011. ..$1.05 billion exit of IFC and KKR from Alliance Tire Group in March 2016, when the shares were acquired by Yokohama Rubber Co. KKR reported 2.38 X in this exit.  The other two major exits were Actis through IPO in Endurance Technologies in October 2016 and Navis Capital selling its investments to promoters in Classic Stripes in April 2016. The two investors made 2.46X and 0.42X respectively. Related:
With $323M funding, 2016 a bumper year for ed-tech c…

Why are venture capitalists taking over operations of portfolio firms?: Forbes

A Forbes article quotes Venture Intelligence data on PE/VC investments: In 2016, as many as 620 transactions were sealed in the PE/VC space, according to data available with research firm Venture Intelligence. Of this, about 65 percent comprised startup investments. In 2015, the year that created history for the highest amount of PE and VC investments both by value and volume, of the total of 775 investments sealed in the January-December period that year, 512 were startup deals. The article also quotes Arun Natarajan, Founder - Venture Intelligence: “Prior to 2014-15, investments in startups were never a ‘bet the farm’ phenomenon for PE/VC investors which means, no single investment in the portfolio would affect the whole fund. So, if any particular investment were to go bad, the investor could afford to write it off and move on instead of replacing the management team or running the company themselves,” said Arun Natarajan, Founder, Venture Intelligence. 

Venture Intelligence is Ind…

Early stage VC advantEdge will back at least 8 companies in 2017: DealStreetAsia

Kunal Khattar, Founding Partner of advantEdge in a interview to DealStreetAsia quotes Venture Intelligence data on VC investments in 2016. How do you see the overall environment for VC deals in India? For the first time in five years, VC investments saw a drop of around 30 per cent in 2016. According to Venture Intelligence data, in 2016, VC firms have invested $1,441 million across 405 deals as compared to $2,018 million across 511 deals in 2015.
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.

Dr Lal PathLabs, Thyrocare could face a few hiccups: Economic Times

An Economic Times article quotes Venture Intelligence data on PE/VC investments in the diagnostics space: Data from Venture Intelligence shows that in the past three years, the (diagnostics) sector has had 21 deals by PE and venture capitalists investing a total of $330 million.Related: Thyrocare IPO AnalysisDr. Lal Path Labs IPO Analysis

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.

10 venture capital dealmakers to watch in 2017: Mint

A Mint article quotes Venture Intelligence data on Venture Capital investments in India: India’s early-stage investors struck 405 deals worth $1.4 billion in 2016, a year that marked the return of reason to the venture capital market. The overall volume and value of investments are down from the previous year by 21% and 28%, respectively, according to data compiled by Chennai-based researcher Venture Intelligence. There’s a little bit of concern around the funding crunch at the Series A stage, the first serious institutional capital round that goes into a start-up. The number of Series A deals last year declined 45% from 2015. On the other hand, the number of seed-stage deals, which precede Series A, have more or less stayed at the 2015 levels. Related reading:
Selectivity is the keyword as Venture Capital investments dip 21% in 2016

Venture Intelligence is India's longest serving provider of data and analysis on Private Company Financials, Transactions (private equity, venture cap…

Manufacturing provides larger exits than IT in 2016; KKR enjoys bumper year

M&A deals account for 43.7% of exits, Venture Intelligence data shows
Private Equity exits in India declined by 18% to $7.86 Billion (across 215 deals) during the calendar year 2016 compared to an all-time high of $9.55 billion (across 270 deals) in 2015, according to data from Venture Intelligence, India’s longest serving data analytics firm focused on private company financials, transactions and valuations. The exit value includes $7.33 Billion of Complete Exits; the remainder being partial ones. These figures, which include exits from Venture Capital type investments and exclude exits from Real Estate investments, take the total realization by PE firms in the five year period starting in 2012 to about $33 billion (across 1,032 transactions). 

19 exits – i.e. 9% of the total deals – were over $100 million in value and accounted for 58% of the overall value harvested during the year. The largest exit during the year was the sale of KKR’s stake worth $1.05 billion in Alliance Tire…

Start-up financing hits a rough patch: The Hindu

A Hindu article quotes Venture Intelligence data on VC investments in India: Private equity (PE) and venture capital (VC) deals have fallen by 29.5 per cent in Tamil Nadu in 2016. Data collated by Venture Intelligence, a research firm focussed on the financials of private companies, show that firms invested $981 million across 31 deals this year compared with $851 million in 44 deals in 2015. During 2014, firms had invested $988 million across 45 deals. The number of angel investment deals in the State stood at 9 in 2016 against 13 in 2015.


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.

Early-stage funding deals see no drop: Times of India

A Times of India article quotes Venture Intelligence data on Early stage investments in 2016: According to data analytics firm Venture Intelligence, there were 107 funding deals this year, almost at par with last year's figure of 117 deals, for investments within $1 million. The top deals in this category were raised by Bengaluru-based self-publishing platform Pratilipi which raised $925,000 in seed funding from Nexus Venture Partners,and others, this June. The trend changed as the deal size increased. For instance, funding rounds between $1 million and $10 million saw a drop from 205 deals last year to 170 deals this year. The big ticket funding rounds of more than $10 million saw only 56 funding rounds this year, compared to last year's 93.


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.

With $323M funding, 2016 a bumper year for ed-tech cos: Economic Times

An ET article quotes Venture Intelligence data on its report on VC investments in Edtech companies: The year 2016 has become a bonanza for the education sector, which has received investments of $323 million - surpassing the previous high of 2014 when ed-tech companies raised $223 million



Strategic investors were also quite active this year, data from Venture Intelligence shows. Text book publishing company S Chand, which had raised $26 million led by IFC in 2015, has become an active strategic investor (backing several startups including Testbook). The EduPristine deal saw US-based DeVry Education Group, while Tabtor got participation from John Katzman, founder of The Princeton Review. Related Reading:

PE/VC Investments in Education spike up in 2016


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.

Share of hospitality deals dip 50 per cent in 2016: Economic Times

An ET Article quotes Venture Intelligence data on VC Investments in the Hospitality sector: According to data shared by Venture Intelligence with ET, the sector witnessed just six deals till November this year compared with 18 in the previous year. The total amount raised was also lower at $86 million against $284 million last year. The data, however, excluded investments in tech companies such as OYO.  While last year's landmark deals included $112-million investment by IDI Emerging Markets in Sapphire Foods, $30-million infusion by India Value Fund Advisors in fine dining chain Indigo and SAIF Partners pumping $19 million into QSR chain Ammis Biryani; this year the highlight was Goldman Sachs' $66-million investment in hotel development and investment firm Samhi Hotels in January.

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…

Selectivity is the keyword as Venture Capital investments dip 21% in 2016

At 405 deals worth $1.4 Billion, 2016 is 2nd Biggest Year for VC investments after 2015, Venture Intelligence data shows

Venture Capital firms made 405 investmentsin Indiaworth $1.4 Billion during 2016 compared to 512 deals worth $2 Billion in 2015 according to data from Venture Intelligence, India’s longest provider of data on private company financials, transactions and their valuations. These figures - 21% lower in volume terms and 28% lower in value compared to the all-time highs of 2015 - make 2016 the second largest for VC investments in country. (Venture Capital is defined by Venture Intelligence as Seed Round to Series D round of investments less than $20 million in size by intuitional investors in companies less than 10 years old.)
Top VC Investments in 2016
Company Investors Amount Knowlarity (Cloud Telephony) Sequoia Capital, Delta Partners, Others $20 M Lendingkart (SME Lending) Mayfield, Bertelsmann India, Others $20 M ScaleArc (Enterprise Software) Nexus Ventures, Accel India, Others $2…