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

Overall since 2014, the figure has been pegged at $10 billion

BS Web team  |  New Delhi 


The (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 and the Indian and 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 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.

First Published: Sat, December 08 2018. 15:23 IST