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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. | ๐Ÿ‘‰ $5Bn of these were to less than 7% of companies that raised rounds. | ๐Ÿ‘‰ 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. | ๐Ÿ‘‰ Indiaโ€™s cornerstone โ€“ 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. | ๐Ÿ‘‰ 2 of 8 top funds are already past the usual holding periods on their investments | ๐Ÿ‘‰ 4 of the remaining 6 will be getting there in the next 12-18 months. โœŒ๏ธ But wait, itโ€™s not all that grim either. ๐Ÿ‘† Dry powder is at a record high. ๐Ÿ‘† SaaS is on its upward climb (CAGR of 55%). ๐Ÿ‘† Exits are on the up-and-up. ๐Ÿ‘† Share of India among APAC deals steadily growing. #venturecapital #startups #funding #india #economy #business #privateequity #finance #vc #funding#funding


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