Early Stage Venture Capital Investments Down 11%; 33 Deals in Q1 2014

Venture IntelligenceVenture Capital firms invested about $92 million across 33 deals in early stage ventures during the quarter ended March 2014.

Investment activity was down 11% compared to the same period last year (37 deals worth $94 million) and 10% higher than that during the immediate previous quarter (30 deals worth $81 million).

Some of the large deals that happened during the quarter

  • FidelisWorld’s $10 million investment in Smaaash Entertainment.
  • The $10 million second round raised by online jeweller Bluestone from Kalaari Capital.
  • The $9 million second round raised by education tablet firm iProf from existing investors Norwest and IDG Ventures.
  • And the $8.5 million first round extension raised by data analytics & visualization startup Indix.

According to data from  Venture Intelligence:

IT & ITeS companies accounted for 23 investments (70% of the pie), followed by couple of investments each notched up by Healthcare & Lifesciences and Clean Energy companies.

Within IT, Online Services companies accounted for 11 deals (48% of the pie), followed by Enterprise Software with five deals (22%) and Mobile VAS with four deals (17%).

Healthcare deals were led by the $8 million follow-on round raised by eyecare focused medical devices firm Forus Healthcare (led by Asia Healthcare Fund with participation from existing investors IDG Ventures India and Accel India) followed by Tata Capital Healthcare Fund’s $3.3 million investment in renal care chain Sparsh Nephrocare.

Angel Investments

Active Angel Investors (including angel networks) announced investments across 13 companies during the first quarter of 2014. Nine of these went into IT & ITES companies, two went to Healthcare & Lifesciences companies and one each into an Education and Quick Service Restaurant company. This compares to 11 investment announced in the same period last year and 10 in the immediate previous quarter.