Press Esc to close
Friday 29 July 2016
News updated at 11:15 AM IST
Weather
Max: 27.6°C
Min : 19.4°C
In Bengaluru
Sunny day

VC investments in India slide to $1.4 bn in 2012: E&Y

New Delhi, Apr 4, 2013 (PTI)

Venture capital investments into India slumped nearly 18 per cent to USD 1.4 billion last year, even though the number of such deals saw a spurt during the same period, according to global consultancy Ernst & Young.

In 2011, such investments into the country had touched USD 1.7 billion.

Amid uncertain economic conditions, global venture capital investments plunged 20 per cent to USD 41.5 billion in 2012. In the previous year, the same stood at USD 51.7 billion.

"The figures for 2011 (in India), however, contained a few large investments with a combined value of between USD 400 million to USD 500 million, and if these are excluded, the year-on-year comparison looks far healthier," E&Y said in a report released today.
However, the number of VC investment rounds witnessed in India last year jumped to 205 as against 175 in 2011.

"Wealth creation in India over the past decade has meant an active domestic investor community especially for angel/ early stage investing which has in turn provided India's VC industry with a degree of insulation from global shocks, and the outlook for the coming year is positive," E&Y Partner (Private Equity) Mayank Rastogi said.

As per the report, the Indian VC industry is heavily weighted towards later-stage investment. The proportion of deals in the revenue generating stage was 87 per cent in 2012, up from 83 per cent in the previous year.

"The reason for the predominance of late-stage investment is that, compared with Silicon Valley, Indian companies are focused less on innovation and more on application development and efficient delivery models, which take less time to develop into the revenue generating phase," it added.

E&Y noted that outlook for this year is "relatively positive" for the Indian VC investment, especially on account of increase in amount of capital being invested in purely domestic opportunities.

Globally, widespread economic uncertainty and a tough exit environment saw decline in VC investments to USD 41.5 billion, while the number of rounds fell to 4,970 during the same period.


Go to Top

Photo Gallery
Renowned sand artist Sudarsan Pattnaik creates a sand sculpture of tiger with message...

Renowned sand artist Sudarsan Pattnaik creates a sand sculpture of tiger with message...

Amitabh Bachchan at the World Hepatitis Day 2016 event...

Amitabh Bachchan at the World Hepatitis Day 2016 event...

Jayalalithaa presents a primary membership card to a newly joined party worker...

Jayalalithaa presents a primary membership card to a newly joined party worker...

Locals try to douse a car godown that caught fire at Panagarh in Burdwan district of West Bengal...

Locals try to douse a car godown that caught fire at Panagarh in Burdwan district of West Bengal...

A policeman fires teargas shell to disperse protesters during a clash in Srinagar...

A policeman fires teargas shell to disperse protesters during a clash in Srinagar...

School students take part in an awareness event on the eve of International Tiger Day...

School students take part in an awareness event on the eve of International Tiger Day...

A demonstrator holds a placard during a protest organised by a Muslim minority forum...

A demonstrator holds a placard during a protest organised by a Muslim minority forum...

Cattle move through flood water at Dhekiabari Village in Kamrup district of Assam...

Cattle move through flood water at Dhekiabari Village in Kamrup district of Assam...

RJD Chief Lalu Prasad looking at his waterlogged residence after a press conference in Patna...

RJD Chief Lalu Prasad looking at his waterlogged residence after a press conference in Patna...

Villagers move to safe place in a boat from the flooded Panikhiti area in Kamrup district of Assam..

Villagers move to safe place in a boat from the flooded Panikhiti area in Kamrup district of Assam..

Copyright 2014, The Printers (Mysore) Private Ltd., 75, M.G Road, Post Box 5331, Bengaluru - 560001
Tel: +91 (80) 25880000 Fax No. +91 (80) 25880523