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.
Contents
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.
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