• Pradyumna Nag

The Hidden Story (somewhat scary) behind VC activity in 2019

VC deals in India grew by 55% in 2019 to $10Bn. | So this is all great news, right? | Not entirely. On the investing side, we have scope for improvement. | 👉 $5Bn of these were to less than 7% of companies that raised rounds. | 👉 60% (~$6Bn) of the total investment went to market opportunity-driven investments. Most Consumer tech, Fintech, Mobility investments are local opportunity-driven and seldom go on to become global bellwethers. | 👉 India’s cornerstone – Software, which has been able to historically generate Fortune 500 companies was less than $1.3Bn. On the exits side, there are going to be new pressures to exit portfolio investments. | 👉 2 of 8 top funds are already past the usual holding periods on their investments | 👉 4 of the remaining 6 will be getting there in the next 12-18 months. ✌️ But wait, it’s not all that grim either. 👆 Dry powder is at a record high. 👆 SaaS is on its upward climb (CAGR of 55%). 👆 Exits are on the up-and-up. 👆 Share of India among APAC deals steadily growing. #venturecapital #startups #funding #india #economy #business #privateequity #finance #vc #funding#funding

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