Snigdha Sengupta (@getsnigdha) of Mint quotes Venture Intelligence data in a 9mth period analysis of PE/VC investments & exits:
Other observations from the article:
- 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).”
- 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.
- 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.
- 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.
