Press Esc to close
Tuesday 23 May 2017
News updated at 2:12 PM IST

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

New Delhi, Apr 4, 2013 (PTI) 16:53 IST
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
Police take away women from a hotel who were arrested for their...

Police take away women from a hotel who were arrested for their...

Vice President Mike Pence, center, receives an honorary degree...

Vice President Mike Pence, center, receives an honorary degree...

President Donald Trump and Saudi King Salman pose...

President Donald Trump and Saudi King Salman pose...

Actor Dustin Hoffman, left, director Noah Baumbach,...

Actor Dustin Hoffman, left, director Noah Baumbach,...

A labourer clears water in a market after rain...

A labourer clears water in a market after rain...

Students arrive for an orientation programme regarding new admissions...

Students arrive for an orientation programme regarding new admissions...

In this photo distributed by the North Korean government, a solid-fuel 'Pukguksong-2'...

In this photo distributed by the North Korean government, a solid-fuel 'Pukguksong-2'...

Pauline Ado of France celebrates with her team after winning...

Pauline Ado of France celebrates with her team after winning...

A man is taken away by police after protesting against fox hunting...

A man is taken away by police after protesting against fox hunting...

Prime Minister Narendra Modi being presented a headgear at the...

Prime Minister Narendra Modi being presented a headgear at the...

Like us on Facebook

Copyright 2017, The Printers (Mysore) Private Ltd., 75, M.G Road, Post Box 5331, Bengaluru - 560001
Tel: +91 (80) 25880000 Fax No. +91 (80) 25880523
Powered by Yodasoft Technologies Pvt. Ltd.