VCs invest over half a billion dollar in India in 2007
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A report by Venture Intelligence says Venture Capital firms invested around $543 million in India in 2007. A total of 98 companies were invested in, majority of them being the seed-level and stage 1 funding.
Sudhir Sethi, Director of US-IVCA and founder, chairman and managing director of IDG Ventures India said,
”With strong interest among Limited Partners in both the VC segment as well as India as a destination, the resurgence in early-stage investments is likely to be sustained going forward as well”
The investments were a bit higher than the $ 500 million invested last year. A total of 94 companies were invested in then.
The IT and ITES sector with $377 million pumped in 65 investments took the lion’s share of the investments made in the country. Services, BPO, IT Products and Mobile VAS firms were the top companies in this sector. IT & ITES was followed by Healthcare, Life Sciences and Media & Entertainment.
Sequoia Capital, Helion Ventures , Erasmic Ventures and IDG Ventures India were the top four investors, in that order. All of them had invested in IT and ITES but have forayed into new sectors such as Clinical Research Outsourcing, Microfinance, retail etc.
Although India is ranked quite low on the ease of doing business index, much of it is due to the regulatory issues. VC spend in India is rising every year. Even government is now creating a fund to boost entrepreneurship. A few incubators are already active in the country, churning out new products and service based companies regularly.
The ecosystem for the entrepreneurship is shaping up, but slowly in India. With a lot more funding flowing into the Indian startups, the nation might just rise up the “ease of doing business” index.
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“$543 billion in India in 2007″ Probably you’d like to correct this small typo (which changes the whole situation).