VC investment in India
As per report by Dow Jones VentureOne and Ernst & Young, VC investment in India has grown significantly in 2007:
- Till Q3 2005, VC investment was 158mn $ (and 320mn$ for the entire year), while 2007 numbers stands at 777mn $
- Majority of investments were made in the IT industry/retail and consumer industry. [source]
Apart from Venture investment, private equity investment in India touched $13.5bn in 2007.
- IT/ITES sector made up for 14.3 percent of such investments,
- financial services accounted for 28.5 percent,
- Manufacturing 3.3 percent,
- Medical and healthcare 1.4 percent, and others 52.5 percent.
In my opinion, what India needs is more of angel funds rather than VCs. The Indian market is still very nascent and don’t think it’s VC-ready yet (for that matter, even Indian VCs aren’t startup-ready!)
What do you think?
Recommended read: Ground realities from an Indian product startup
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About the author - Ashish Sinha is a Startup Mentor/Product Strategy Coach, and the founder/chief editor of pluGGd.in.
He has launched/managed couple of products (consumer as well as enterprise) in US and India, and now consults with startups/small businesses on their product/media strategy. He can be reached at: ashish (at) pluGGd.in [+91 98452 06443]
But...
[...] VC investment in India stands at 777mn $, and private equity closed deals worth $13.5bn in 2007. India Shining? Well, yes but the real question is where is the money going? [...]