VC investment in India

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As per report by Dow Jones VentureOne and Ernst & Young, VC investment in India has grown significantly in 2007:

  • Till Q3 2005, VC investment was 158mn $ (and 320mn$ for the entire year), while 2007 numbers stands at 777mn $
  • Majority of investments were made in the IT industry/retail and consumer industry. [source]

Apart from Venture investment, private equity investment in India touched $13.5bn in 2007.

  • IT/ITES sector made up for 14.3 percent of such investments,
  • financial services accounted for 28.5 percent,
  • Manufacturing 3.3 percent,
  • Medical and healthcare 1.4 percent, and others 52.5 percent.

In my opinion, what India needs is more of angel funds rather than VCs. The Indian market is still very nascent and don’t think it’s VC-ready yet (for that matter, even Indian VCs aren’t startup-ready!)
What do you think?

Recommended read: Ground realities from an Indian product startup

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