Bigger VCs in India have shifted focus to later-stage investments: Report

VC industry in India has evolved to a more "mature" phase in the last couple of years, says a recent report by Bain & Co and IVCA

Venture capital (VC) firms are doing fewer deals and bigger VCs have shifted their focus to later-stage investments, reveals a recent report by Bain & Co and Indian Venture Capital Association (IVCA). Here are the key numbers and highlights from the report. 

Key Takeaways

| VCs in India are well funded with Rs $10bn capital raised over the last 4-5 years; 80-85% total capital raised by 10-15 large VCs

| VCs are focusing on quality of deals; round sizes have increased across investment stages over the past 3-4 years

| Bigger funds are focusing on later stage, higher ticket size deals (top 10 VCs accounted for Rs 50% of deals in 2017 vs 30% in 2012)

| Investment by Corporate VCs such as Google Ventures, Flipkart, PayTm has increased 4x over the past 4-5 years 

| Consumer Technology accounts for Rs 60% of total VC deals in India with SaaS accounting for another Rs 20%

| 50% of Series A+ deals have raised follow-up capital; 5-15% of start-ups funded have gone on to cumulatively raise >$100M

| Exit momentum picking up —Rs $4.2B net VC exit value in 2017 vs Rs $1.3B in 2014)— and is expected to accelerate