Early stage VC investments cross $1 billion mark

Early stage investments in the first nine months of 2015 crossed the $1 billion mark, a report released by Venture Intelligence stated. As many as 323 deals worth $1,438 million have been made in the first nine months, compared to 304 investments worth $1,170 million across 2014.

Venture Capital (VC) firms invested $536 million over 111 deals in India during the past three months, record numbers for a single quarter.

The investment activity during Q3'15 was 41% higher compared to the same period in 2014. The activity level was 9% higher than the previous quarter. The main action was concentrated in seed, first and second round investments.

Technology-driven companies were the primary focus of most funds. Of the 111 deals, 79, worth $376 million, were IT & ITES companies.

Tiger Global's $20 million investment in mobile-based news service News in Shorts and a similar amount attracted by engineering services BPO Allygrow in a round led by Zodius Capital caught the eye. Tiger Global also participated in two $15 million rounds for online hotel and hostel aggregator Zostel and online shopping recommendations platform Relevant E-Solutions.

Two online marketplace services for pre-owned automobiles attracted $15 million each. Droom raised money from Japan-based Beenos Partners and Lightbox VC, while CredR received funding from Eight Roads Ventures.

Food & beverages companies were the second favourite for VCs attracting six investments worth $27 million.

Venture Intelligence classifies Venture Capital as first to fourth round of investments of not more than $20 million each by investors into companies not more than 10 years old.