VC Activity Drop in Q4 2008

Q4 2008 witnessed major drop in VC activity – an approx drop of ~64% compared to the last quarter.

Indian VCs - Walking on a tight rope
Indian VCs - Walking on a tight rope

In Q4 2008, VCs invested $81mn over 16 deals, while they had invested $225mn (over 50 deals) in Q3 2008 and $227mn (over 45 deals) in Q4 2007.

The total number of investments in 2008 stands at $740mn (over 125 deals), as against $876 million invested over 144 deals during 2007 (source)

The good news is that deal flow is still steady, it’s just that the time taken to close deals has increased significantly and do not be surprised if Q1 2009 witnesses lesser investments than Q4 of 2008.

What’s your take?

Related: Indian VC Directory

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