According to the latest EY Global Venture Capital Insights and Trends report, in 2013 Venture capital funding at the start-up stage fell across countries, except India, although India got lowest of only 1 million funding but it has risen from 2012 figures and India is only country ahead of US, Europe and China in terms of rise in investment from previous year.
In 2013 India is fourth in the global VC rankings, saw an increase in dollars invested of 13%.
In 2013, there were 325 VC funds raised, across all investing stages, for a total of US$28b. In contrast, 2012 saw 344 funds raised, totalling US$33.5b. The US accounted for 64% of the funds closed, with 207 funds in 2013 compared to 185 in 2012.
VC activity in India was largely in line with 2012 levels in terms of deal value and volume. While the number of
deals fell marginally by 2% compared to 2012, the amount invested increased by 13%.
India saw revenue-generation stage investment decline to 63% of total investment in 2013, down from 82% in 2012. Investment made at the profitable stage during 2013 however represented a third of total investment which is more than double the proportion in 2012. This indicates both that investors continue to be cautious about the early stage, and more interested in making late-stage investments in companies as they scale.
Over the last 2 years, the percentage of angel and incubator participation in India – at 16% in 2013, up from 3% in 2011
Angel investors and crowdfunding platforms however shown significant amount of involvement at start-up stages left by VCs this year. VCs instead are investing in later stages and high-growth ventures.
India saw investments at the profitable stage rise to double of what is in year 2012 which is 33 per cent of the total deal value in 2013.