Venture capital (VC) and private equity (PE) funds had, in 2024, taken bets on traditional businesses rather than tech-first domains like consumer tech, software as a service (SaaS) and software. According to data from Bain & Co, Pitchbook, Venture Intelligence, VCC Edge and AVCJ, prominent VC funds like PeakXV saw their share in this traditional space go up sharply from 14 per cent in 2023 to 23 per cent in 2024.
Venture Capital investments are early-stage monetary investments made in new start-up firms that have a high growth potential.
In the hottest sector of AI, where most global VC funding is going currently, the country's record has not been anything to write home about.
If you are an entrepreneur and apprehensive that the global market meltdown will strain your fund-raising plans, fear not. India-focused private equity and venture capital funds raised $7 billion (Rs 27,958 crore) in 2007, excluding real estate, last year. They had garnered a similar amount in the corresponding previous year, according to data from Venture Intelligence, a venture capital research company.
At least 14 of the top 20 venture capital (VC) and private equity (PE) funds in India reduced new deals with start-ups by a fifth in 2022. The number fell from 572 in 2021 to 456 this year, according to data from Venture Intelligence. Sequoia Capital, a leader in investments, retained its top slot but its number of deals fell from 110 in 2021 to 70 this year.
Venture capital funds and private equity investors disbursed an estimated $1.3 billion in India in 2004, a growth of 49 per cent over the previous year
US hedge fund Tiger Global and Japanese investment giant SoftBank have trimmed their investments in Indian start-ups by over a third - from $3.8 billion in the second half of 2021 to a mere $1.08 billion in H1 2022, according to data from Venture Intelligence. While SoftBank's investments in India dropped from $1.9 billion in H2 2021 by more than a fifth to only $0.33 billion in H1 2022, that of Tiger Global fell from $1.92 to $0.74 billion in the same period. Private equity (PE) fund trackers point out that this year most of the deals that Tiger Global has invested in are in the early stage (up to series D), and only a few are in the series E and above.
While some have announced setting up of a PE club for aspiring entrepreneurs, others plan courses, special lectures and seminars to create awareness about the booming sector. Students of the Post Graduate Programme for Executives at Indian Institute of Management, Ahmedabad, will go through a course on PE in their last term between December and February.
The $108 billion Indian IT-ITeS industry is also witnessing the rise of tier II and III cities like Kochi, Ahmedabad and Kolkata as product hubs.
Venture capitalists and private equity players have slowed investments in Indian start-ups.
As many as 11,500 startups would come up in the country employing over 2,50,000 people by 2020, according to key findings of India Start-up Report 2014 of industry body Nasscom.
The whole game is about 'who wants who' more desperately?
Don't get carried away by the initial success of an idea. You must be open to change, be ready to tweak or make a strategic shift, if the market demands that you do it.
Financial numbers can sometimes paint a rosy picture because of changes in the accounting policy or a one-time income.
© 2026 Rediff.com - Advertise with us - Disclaimer - Privacy Policy - Sitemap - Feedback - About us - Terms of use - Grievances