Venture capital deal value grew 5 times in the last 10 years: Report

The venture capital (VC) market in India is through the "scale-up phase" and is now on the path to maturity, says a report.

Over the last couple of years, the VC industry has matured and the focus has shifted to placing selective bets on fewer investments, the report prepared by Bain & Company and the Indian Private Equity and Venture Capital Association said.

"Bigger VCs have accordingly shifted their focus to later-stage investments with many new smaller VCs playing in the Seed/Series A stage," it said.

The study said venture capital deal value grew 5 times in the last 10 years, with 2017 deal value at $3.4 billion. Overall since 2014, the figure has been pegged at $10 billion.

According to the report, the exit momentum has also picked up in the last few years with $4 billion worth of exits in 2017. "Going forward, exits are expected to increase in future with 80 per cent of start-up founders expecting investor exits by 2024".

On the start-up ecosystem in the country, the report says India has been recording rapid growth with a number of total start-ups and funded start-ups growing at 30 per cent CAGR. "Multiple factors have contributed in building this flourishing start-up ecosystem in India. These include access to abundant, high-quality talent, strong underlying macroeconomic growth, holistic ecosystem enablers (like co-working spaces) and a supportive regulatory framework," the report said.