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VC investment in Indian startups: touching a new high

Aparna Dutt Sharma, Chief Executive Officer, IBEF

Jul 07, 2014 15:09

The ecosystem for startups in India has improved in recent years. Banking on the emergence of angel funds, rising acceptance towards entrepreneurship and the opportunities available across sectors, many first generation entrepreneurs have created scalable businesses and popular consumer brands in the short run. The sustained investments from venture capitalists (VCs) point towards a bright future for these early stage companies. Investments from VCs in Indian startups stood at US$ 605 million with 121 deals during the first half of 2014 registering a growth of 40 per cent in volume and 66 per cent in value. Interestingly, VC investments are at their highest level for the first half since 2010 and are close to overtaking the entire amount deployed in 2013 (US$ 630 million). Ecommerce and internet segments continue to be the hotspots for investments for global VCs. Investment in ecommerce and internet as well as consumer segments has grown by about seven times between 2010 and 2013.

The increasing VC investment in the Indian startups displays confidence in the positive ecosystem for entrepreneurs. With the government at the Centre proposing to create a separate Ministry for promoting entrepreneurship, the entrepreneurial aspirations can expect a further fillip.