While this should not come as a surprise, it’s really important to note the % decrease in average valuation of startups in US.
As per data collated by Angelsoft (a software company that tracks valuation trends), valuations for funded startups in Q4 of 2008 fell by 24% when compared to Q3 of the same year.
The company’s software, which is used by more than 450 angel groups and venture funds worldwide, tracked a total of 128 deals in the quarter with a median pre-money valuation of $3 million. In the third quarter, it tracked 123 deals with a median value of $3.9 million.
Q4 numbers represent the largest quarter-to-quarter drop in the 4 years that it has been tracking company valuations. – source
This is an unfortunate truth which many startups do not acknowledge. Hence for VCs, while the deal flow is steady, outcome is not.
The tussle continues.
People in india try to succeed by publicity and media and not hard value work.Hence the VCs are wary of investment in such companies. See the fate of Ramalinga Raju much acclaimed entrepreneur who pioneered the internet companies in India.Don’t trust the finances of the net companies anymore.
Most of the payment gateways still work manually in India.they are not able to transfer funds completely thru the net.The banks after accumulation of collection issue pay orders or Bankers cheques which they transfer to their account or collecting company thru clearing manually.ie by depositing their cheques into their banks for clearing and collection. thus the transfer is not thru the net and instantaneous. May be when we pay banks take the money from the account instantaneously.when they give they give thru bankers cheques.