Venture Capitalist Firms Invest US$77 Million from July to September

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Oct. 21 – Venture capital (VC) firms have poured in US$77 million worth of projects in India from July to September, says a study by Venture Intelligence in partnership with the Global-India Venture Capital Association (GIVCA).

The value of the 17 deals is significantly lower compared to the same period last year which saw VC firms investing US$298 million in 55 projects although it is an improvement from the previous quarter which reported a figure of US$64 million spread in 17 deals.

“The return of confidence in emerging markets in general and India in particular is now getting reflected in the quarter-on-quarter numbers. Going forward, we expect the investing momentum to pick up even further,” GIVCA director Sudhir Sethi said in a statement.

In total, from January to September this year, 46 VC deals were came through worth an estimated US$201 million.  This represents a stark slowdown of VC investment considering that during the same period last year, 124 deals worth US$709 million came through.

“Liquidity position of the limited partners is improving and by December quarter we will see funding returning to 2006 levels, wherein investments were at a more sustainable level,” Arun Natarajan of Venture Intelligence told LiveMint.

India’s information technology and IT-enabled services companies continued to attract most of the investments followed by the BFSI industry with the biggest project being a Lightspeed Venture Partners-led investment worth US$10 million with Mumbai-based Itz Cash Card.