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Showing posts from September, 2018

VC Funding: Valuation & Return Multiples at Each Stage

Unitus Ventures has put up some interesting data and charts on the typical capital invested, valuation and equity dilution that startups - especially impact focused ones - witness in the Indian context (including at the time of exit).

 In the lowest-case $20M exit, founders plus employees are making a little over $1M, while financial investors are making a tiny multiple or losing money. At the rather optimistic exit valuation of $60M, founders plus employees take home nearly $11M, and each series of investors make a fine total return, achieving overall objectives.

..life is pretty good for pre-seed investors in any exit on this chart, and they make 19-52x return between $30M and $60M. Seed investors...don’t make a ~10x return in this model until a $60M exit is achieved.  Series A investors who have a similar risk profile and return potential only see a 5x return at $60M exit.

...There have been very few examples of venture-funded businesses achieving over $50M exit valuations in India…

Why head honchos of PEs are starting their own funds: Times of India

A ToI article, covering fund managers launching new funds, quotes data from Venture Intelligence's Fund Raising database:

The article also quotes PE-VC investments data from Venture Intelligence: PE firms invested a record $8.2 billion across 158 deals during the quarter ended June 2018. That’s a 60% jump compared to the same period last year, according to data from Venture Intelligence. The latest figures have catapulted total PE investments in the first half of 2018 to $12.4 billion (across 315 deals) - a figure similar to the one recorded in first half of 2017 (across 358 transactions). Incidentally, 2017 was the biggest ever year for PE investments in India, recording $23.5 billion across 660 deals. What is driving these new fund launches? Click here to continue reading.
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.

Government’s infrastructure focus draws investors: ET

An ET article quotes Venture Intelligence data on PE investments in road sector Private equity (PE) investments in the roads sector have shot up to a decade high of $1,827 million (approximately Rs 12,240 crore) in 2018 so far according to the data from Venture Intelligence. This was boosted by $1,487 million investment by Macquarie in a toll-operate-transfer (TOT) project of NHAI in March 2018. In 2017, PE funds had invested $465 million.

Click here to continue reading.
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.


Despite tech prowess, start-ups in space sector find it hard to raise funds: Business Standard

A Business Standard article quotes Venture Intelligence data on Private Equity & Venture Capital investments in space technology:
PE-VC Investments in Aerospace Companies CompanyInvestorsAmount US$MDateExseed SpaceExseed Electronics FundN.A*Apr-2017Pinaka Aerospace SolutionsKITVEN0.6Dec-2015Team IndusNandan Nilekani, Others1.5Mar-2015Maini Global AerospaceUndisclosed10Nov-2011Mahindra AerospaceKotak PEN.A*Apr-2010Trusted Aerospace & Engg.Subhkam VenturesN.A*Dec-2007HAL Edgewood TechnologiesEdgewood Ventures0.35Mar-2007

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.

At $22 billion, 2018 sees most exits by PE/VCs till date: The Times of India

A ToI article quotes Venture Intelligence data on Private Equity & Venture Capital exits in India: Driven by the Walmart-Flipkart deal, the year has so far seen nearly $22 billion worth of exits till date through more than 160 deals, according to data from research firm Venture Intelligence. While 2017 saw $14.5 billion for the whole year, previous years saw less than $10 billion. Analysts point out that while the Flipkart deal contributed to a chunk of the deal size in terms of value ($12 Billion), the mood among investors also favours exits. "IPOs, M&A exits and acqui-hires have contributed to the 165 deals so far. Among IPOs, the engineering firm Varroc went public where Tata Capital sold its entire stake in the company. AU finance saw Kedaara Capital and Warburg making a partial exit," said Venture Intelligence MD Arun Natarajan.  With unicorns raising funds and consequently giving exits to smaller investors, there is an emergence of funds such as TR Capital and…