If you are a Early Stage Startup, your chances are of getting VC or Private Equity funding is very slim and numbers prove it – Only 9% of all the VC / PE deals have been for early stage companies between 2004 to 2008. This is especially true during the times of recession. Venture Capitalists play it safe and hardly venture in funding a early stage startups.
These are the findings of “India Venture Capital & Private Equity Report 2009”, created by Thillai Rajan & Ashish Deshmukh of IIT, Madras. The report analysis in detail the venture capital and Private Equity funding in India between 2004 to 2008.
India had seen tremendous growth in overall Private Equity funding (2008 was exception due to downturn) – In 2004, the total value of PE deals was $1.8 billion which grew tremendously to $22 billion in 2007 and then falling down to $8.1 billion in 2008.
Here are some of the highlights of the report:
Stage wise Private Equity Investment between 2004 to 2008

Out of the total PE VC Investments, around 50% went to Growth and Late stage companies.
Industry-wise Private Equity Investment breakup by amount
Financial Services Sector (24%) got the biggest share of Investment, followed by Telecom & Media (17%), Engineering & Construction (15%) and IT & ITES (13%).
Industry-wise Private Equity Investment breakup by Deal numbers

While the Financial Services sector lead in the total PE Investment amount, IT & ITES sector (20%) generated maximum number of deals followed by Manufacturing (17%) and Financial Services (13%).
Early Stage Vs Late Stage Private Equity Investments

Like mentioned earlier, the Early stage Investment saw biggest drop (90%) in 2008 due to downturn, while the Late stage investment was relatively unaffected.
If you need the complete report giving in-depth analysis of all the Private Equity deals executed between 2004 to 2008, please drop in a comment.
Report via: @vijayanands
Author: Arun Prabhudesai
Arun Prabhudesai is founder / chief editor at trak.in. He jumped the Entrepreneurship bandwagon in early 2008 after a long 13 year stint in I.T Industry. You can follow him on twitter @trakin or get in touch with him at admin-at-trak-dot-in or 91.9822575676.Related posts:
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- Move aside Web2.0 and Hi-tech: VCs to finance bottom-of-the-pyramid projects in India.
- Amongst BRIC Nations, India second most targeted country for Mergers & Acquisitions
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{ 28 comments… read them below or add one }
A copy of the report would be nice to read.
Hi,
This is a really useful report as I am currently studying the penetration of VC fundin in India. It would be great if I could get a copy of the complete report.
Regards,
Pooja
I am interested in finding out the Seed Stage and late stage VC funding in India. It would be great if I could get a copy of the report. would appreciate if you can e-mail the electronic version to srinivas.fuqua@gmail.com
thanks
Srini
trak.in is an excellent attempt to help indian entrepreuners. Appreciate it.
Could you please send a copy of this report to satendra.pratap@gmail.com
Thanks,
Satendra
It would be very interesting to read this report. Could you please email it to me?
Yesterday I requested a copy of this report and since then browsing my emails
eagerly for the same. If you are unable to send individual copies, could you please
let us know the link we can download this report from?
Appreciate a reply.
Thank you,
Satendra
If any of you still not received the report please mail us at vcreport2009@iitm.ac.in
Would be glad if you could please mail a copy to arun@aslindia.in.
Thank you,
Arun
Iam studying the early stage vc investmnets in India. It will be very useful if you could mail a copy of the report to me.
Regards,
Vijaya
This blog does not specify your mail ID so better mail us vsreport2009@iitm.ac.in so that we can send you the report.
I would love to have a copy of the report… Thanks
Quite interested in the role of private equity in India. Would very much like to have a copy of your report which is the source for the above information.
Thanks
please note my email id is: ksrao03@yahoo.co.in
I am a PG student with a little work experience in US PE research. Can you please mail me the report as i would love to know more about the scenerio in India. saurav.d@itm.edu
Can you please send me the report. Appreciate your cooperation.
Hi,
I’d appreciate it if you could email an electronic copy of the report to the email address listed in my profile.
Thanks,
MT
Can you please send me the soft copy of the report. It will be highly appreciated.
Hi,
Kindly send a soft copy of the report to swmohiuddin@gmail.com
Best regards
Would like a copy of the report.
We are interested in this activity ,will be mor than happy to receive a copy of the report’Thanks- Dhiren
I would like to have a copy of the report to understand the investment in the Indian energy sector
I would like to understand the investment and trrends in Indian Energy sector
Hi,
Trak.in is really good and very helpful.I would like to have a copy of the complete report as I am doing a study of penetration of VC fundin in India.
Regards.
Hi,
Congrats on a great effort! I have been tracking the PE scene in Power sector closely but would love to understand the overall scenario in India. Request a copy of this fantastic report. Thanks.
Hi,
Congrats on a great effort! I have been tracking the PE scene in Power sector closely but would love to understand the overall scenario in India. Request a copy of this fantastic report. Thanks.
My email id is vijay_sp04@yahoo.co.in.
I am a graduate student in Cambridge, MA and I am working with my team on venture capital in India. Can you please email me the report at hh36002@yahoo.com, it would be very helpful to review the work on VC from IIT.
Best Regards
dear sir i m doing research on vc plz mail me the complete report of it . i m highly oblige to u
thanks
garimain2001@gmail.com
Respected sir,
I m student of MBA and conducting research on venture capital, I need urs help so could you plz forward me report for completing my research successfully.
thanking you.