Venturi Partners Invests $25 Mn in Footwear Brand JQR

Venturi Partners, a leading consumer fund in India and Southeast Asia, today announced a $25 million investment in JQR (Just Quick Run), a rapidly emerging brand in the affordable footwear segment. This marks the first venture capital funding for JQR, with Venturi acquiring an undisclosed minority stake.

Founded in 2014, JQR is today, a highly trusted brand in India’s $12 billion mid and economy priced footwear segment. With vertically integrated manufacturing, in-house design capabilities and strong offline distribution, JQR consistently delivers high quality products at affordable price points.

Rishika Chandan, Managing Director of Venturi Partners, commented:

We are very excited to partner with JQR. The footwear industry is seeing strong support from government policies, and we believe there is a significant gap in the price segment that JQR operates in. India’s consumer market continues to have a dearth of high-quality, affordable brands, and our mission at Venturi is to identify and scale such businesses across categories. JQR has impressed us with its product quality, design aesthetic, in-house manufacturing, and well-established distribution network. We look forward to working closely with the founders to accelerate their growth trajectory.

This funding will allow JQR to further expand its offline presence to new markets as well as launch its online channel, and further enhance its product offerings to meet India's rising demand for affordable, high-quality sneakers.

The promoter brothers of JQR, Rinku, Sunil and Manish Garg commented: 

The partnership with Venturi Partners marks an exciting milestone in JQR’s journey. The investment will not only allow us to accelerate our growth and deliver value to our consumers, but, with their support and expertise, we are also confident that JQR will emerge as the leading brand in its category and deliver strong value to all stakeholders.

This investment is part of Venturi Partners’ broader strategy to empower audacious brands across sectors such as retail, education, healthcare, fast-moving consumer goods (FMCG) amongst others. Venturi Partners aims to support JQR not just with funding but also with strategic expertise, helping the company scale efficiently while staying true to its core brand identity. Venturi’s existing portfolio includes Livspace, Country Delight, Believe, Pickup Coffee, DALI, and K-12 Techno.

VC Funding in Crypto Startups Grew by 40.3% in Q1'24 To $2.4 Bn

Venture capital funding in the cryptocurrency sector has seen a significant increase, reaching $2.4 billion in the first quarter of 2024. This marks a 40.3% rise from the previous quarter, as reported by Pitchbook. The growth in funding is attributed to several factors, including the anticipation of lower interest rates and the introduction of the first U.S. bitcoin spot ETF, which has heightened investor interest.

The funding was distributed across 518 deals, and it's interesting to note that this surge comes at a time when global venture capital investments have declined to a near five-year low. Despite economic concerns and the shutdown of key market players, the landmark U.S. regulatory approval of spot bitcoin ETFs offered by industry giants like BlackRock and Fidelity has bolstered the legitimacy of the asset class. This development helped propel bitcoin to a record high of $73,803 in March.

Startups focusing on building infrastructure for crypto and blockchain technology were at the forefront of receiving funding during this period. The largest deal reported was by the decentralized cloud platform Together AI, which raised $106 million in an early-stage round led by Salesforce Ventures, valuing the company at $1.1 billion.

The competitive nature of investment rounds, especially at early stages, and the higher valuations they are commanding compared to late-stage deals, are notable trends in the current venture capital landscape for crypto startups. While exits remain low, there is an expectation for mergers to increase later in the year, particularly among crypto exchanges, custodians, and infrastructure providers as the market continues to mature.

Venture Capital Funding of Indian Startups Down by Massive 76.4% YoY in H1 2023, Reveals GlobalData

India experienced a relatively more significant impact compared to the United States, China, and the UK

Venture capital (VC) funding activity in Indian Startup Ecosystem experienced a major hitch during the first half (H1) of 2023 and the resulted impact was very prominent in terms of value, according to GlobalData, a leading data and analytics company.

A total of 568 VC funding deals of worth $3.7 billion were announced in India during the period. This represents a year-on-year (YoY) decline of 43.3% in terms of deals volume and a massive 76.4% in terms of value, said the report. 

The total funding value in India during H1 2023 was down by more than four times compared to the total funding value for first half of last year. An analysis of GlobalData’s Financial Deals Database revealed that Indian startups raised $15.8 billion across 1,002 VC funding deals in H1 2022.

Aurojyoti Bose, Lead Analyst at GlobalData, comments: “Owing to the challenging economic scenario, investor sentiment had a dent globally. As a result, several key global markets, including India, have experienced subdued VC funding activity. The steep decline in funding value could also be signal of prolonged funding winter and severity of investor cautiousness.”

Bose adds: “Apart from macroeconomic challenges and recession fears, concerns around startup valuations also seem to take a toll on investor sentiments in the country. In fact, the impact in India, which happens to be among the top five markets globally in terms of both VC funding deal volume and value, also seems to be relatively more prominent compared to the US, China and the UK.”

For instance, VC funding deal volume for the US, China and the UK declined by 34.7%, 15.8%, and 28.6% in H1 2023, respectively, compared to the same period in the previous year. The decline in corresponding value for these markets was even relatively lesser, standing at 49.2%, 36.3% and 54.7%, respectively.

Digital Health Shatters Funding Records with $6.3 Billion in H1 2020, Reports Mercom Capital Group

Mercom Capital Group, llc, a global communications and research firm, released its report on funding and mergers and acquisitions (M&A) activity for the Digital Health (Healthcare Information Technology) sector for the second quarter (Q2) and first half (1H) of 2020. Mercom’s comprehensive report covers deals of all sizes from across the globe.

Global VC funding for Digital Health companies in the first half (1H) of 2020 shattered all previous 1H funding records, bringing in $6.3 billion. Funding activity was up by 24% during 1H 2020, compared to $5.1 billion raised in 1H 2019.

However, in Q2 2020, Digital Health companies raised $2.8 billion in 161 deals, a 23% decrease compared to Q1 2020. Year-over-year, funding was down by 11% compared to $3.1 billion in 169 deals in Q2 2019.

Over half of the funding went into just 20 Digital Health companies during Q2 2020.

“Seen as a solution to many of the health challenges resulting from the COVID-19 pandemic, several digital health technologies and services have gone mainstream. Investors have noticed the potential, and Telehealth has been the biggest beneficiary and has received almost $2 billion in the 1H. mHealth apps and data analytics companies have also benefitted. Digital Heath companies had their best fundraising first half ever and have now raised $50 billion venture funding in over 5,000 deals since 2010,” said Raj Prabhu, CEO of Mercom Capital Group.

Digital Health consumer-centric companies accounted for 66% of the funding in Q2 2020, raising $1.8 billion in 105 deals, while practice-centric companies accounted for 34%, raising $947 million in 56 deals.

The top-funded categories in 1H 2020 were: Telemedicine with $1.7 billion, Analytics with $826 million, mHealth Apps with $794 million, and Clinical Decision Support with $545 million.

Telehealth companies received a record of $962 million in 50 deals in Q2 2020 compared to $930 million raised in 35 deals in Q1 2020. Funding increased 42% YoY in Q2 2020 compared to the same period last year.

Other top categories that received funding in Q2 2020 included mHealth Apps with $429 million, Data Analytics with $253 million, Wellness with $172 million, and Medical Imaging with $161 million.

Early round venture capital funding (Seed, Series A) came to $690 million. Most of the VC funding in early rounds in 1H 2020 went to Telemedicine, mHealth Apps, Data Analytics, and Clinical Decision Support companies.

Four hundred and eighty-eight investors participated in funding deals in Q2 2020, compared to 433 investors in Q1 2020. Optum Ventures led Digital Health financing activity during Q2 with six investments. Seedcamp and Y Combinator each made four investments, and another 31 investors made two or more investments during Q2 2020.

A record 921 investors participated in 1H 2020, compared to 821 investors in 1H 2019. This is the largest number of investor participation in 1H since 2010.

The Top VC deals in 1H 2020 included: $285 million raised by ClassPass, $250 million raised by Alto Pharmacy, $194 million raised by Amwell (formerly American Well), $155 million raised by KRY, and $150 million raised by Concerto HealthAI.

Twenty-one different countries recorded Digital Health VC funding deals in Q2 2020. Companies in the United States recorded the most number of VC funding deals with 105.

Fourteen Digital Health products received FDA/CE approvals in Q2 2020 and 224 since Q1 2017.

In 1H 2020, a total of 83 Digital Health M&A transactions were announced compared to 91 in 1H 2019. In Q2 2020, there were 42 M&A transactions compared to 46 M&A transactions in Q2 2019.

mHealth Apps were involved in the most M&A deals in 1H 2020 with ten transactions, followed by Data Analytics and Practice Management Solutions companies with nine each. Telemedicine companies recorded eight transactions, and Wearable Sensors and Wellness companies had five each. Medical Billing companies were involved in four transactions.

Notable M&A transactions in 1H 2020 were: the acquisition of ArcherDX by Invitae for $1.4 billion, Teladoc Health’s acquisition of InTouch Health for $600 million, lululemon athletica’s acquisition of MIRROR for $500 million. AMN Healthcare acquired Stratus Video for $475 million, and CompuGroup Medical acquired Cerner’s assets in Germany and Spain for $248 million.

This report is 100 pages in length, contains 69 charts, graphs, and tables, and covers 731 investors and companies.

Mercom’s comprehensive report covers deals of all sizes across the globe.

To learn more about the report, visit: https://mercomcapital.com/product/1h-q2-2020-digital-health-healthcare-it-funding-ma-report

Battery Storage, Smart Grid, and Efficiency Companies Raise $252 Mn in VC Funding in Q1 2020

Battery Storage companies raise $164 million; Smart Grid companies raise $81 million; Energy Efficiency companies raise $7 million

Mercom Capital Group, llc, a global clean energy communications and consulting firm, released its report on funding and mergers & acquisitions (M&A) activity for the Battery Storage, Smart Grid, and Energy Efficiency sectors for the first quarter (Q1) of 2020.

In Q1 2020, $252 million was raised by Battery Storage, Smart Grid, and Energy Efficiency companies, a 20% increase from the $210 million raised in Q1 2019.

Battery Storage

Total corporate funding (including VC, Debt, and Public Market Financing) in Battery Storage came to $244 million in nine deals compared to $635 million in 10 deals in Q4 2019. Funding was up 88% year-over-year (YoY) compared to $130 million in nine deals in Q1 2019.

Venture capital (VC) funding (including private equity and corporate venture capital) raised by Battery Storage companies in Q1 2020 came to $164 million in six deals compared to $78 million in seven deals in Q1 2019. Quarter-over-quarter funding was also higher compared to $126 million in seven deals in Q4 2019.

The top VC funded Battery Storage companies this quarter were: Demand Power Group, which raised $71 million from Star America; Highview Power raised $46 million from Sumitomo Heavy Industries; Advano raised $19 million from Mitsui Kinzoku SBI Material Innovation Fund, Future Shape, PeopleFund, Thiel Capital, DCVC, Y Combinator; ZincFive raised $13 million from 40 North Ventures, and TWAICE raised $12 million from Creandum.



Fourteen investors participated in Battery Storage funding this quarter.

In Q1 2020, announced debt and public market financing for Battery Storage technologies was 54% higher YoY compared to $52 million in two deals in Q1 2019.

One battery storage project fund of $140 million was also announced in the quarter.

There were four M&A transactions involving Battery Storage companies in Q1 2020 (no transaction amounts disclosed). There were no M&A transactions in Q4 2019. There were four M&A transactions in Q1 2019, of which only one disclosed the transaction amount.

Blackstone Energy Partners acquired NRStor C&I, a subsidiary of NRStor, a developer of battery storage solutions.

There were four announced project M&A transactions in the Battery Storage category in Q1 2020 (all transaction amounts were undisclosed).

Smart Grid

Total corporate funding in Smart Grid came to $86 million in nine deals compared to $32 million in 16 deals in Q1 2019.

VC funding for Smart Grid companies increased in Q1 2020 with $81 million in seven deals compared to $32 million in 15 deals in Q1 2019.

The top 5 VC funded Smart Grid companies included: Smart Wires, which secured $43 million; GridBeyond raised $14 million from Energias De Portugal, Act Venture Capital, Electricity Supply Board, and Total Carbon Neutrality Ventures; Driivz raised $11 million from Gilbarco Veeder-Root and Centrica Innovations; Leap raised $8 million from Union Square Ventures, Silicon Valley Bank, Congruent Ventures, National Grid Partners, Powerhouse Ventures, Elemental Excelerator, and FJ Labs; and BluWave-ai raised $4 million from Sustainable Development Technology Canada and OCE.

Twenty-two investors participated in Smart Grid VC funding rounds this quarter with Grid Optimization company raising the most.

Five million dollars was raised in two debt financing deals in Q1 2020, compared to $28 million in one deal in Q4 2019. In a YoY comparison, $1 million was raised in one debt financing deal in Q1 2019.

Five M&A transactions were announced in Q1 2020 (none disclosed transaction amounts), compared to six undisclosed transactions in Q4 2019. In a YoY comparison, there were 10 M&A transactions (one disclosed) in Q1 2019.

EDF acquired a majority stake in Pod Point, an electric vehicle charge point provider.

Efficiency

Total corporate funding in Energy Efficiency came to $7 million in three deals compared to $345 million in two deals in Q4 2019. In a YoY comparison, $155 million was raised in two deals in Q1 2019.

VC funding raised by Energy Efficiency companies in Q1 2020 came to $7 million in three deals compared to $30 million in one deal in Q4 2019. In a YoY comparison, $100 million was raised in one deal in Q1 2019.

Eight investors participated in VC funding this quarter.

In Q1 2020, there were no debt and public market financing deals. By comparison, in Q4 2019, $315 million was raised in one deal. In Q1 2019, there was also one deal for $55 million.

In Q1 2020, there was one M&A transaction for $1.4 billion, while in Q4 2019, there was no M&A transaction. In Q1 2019, there was one M&A transaction for $310 million in the Energy Efficiency sector.

To get a copy of the report, visit: http://mercomcapital.com/product/q1-2020-funding-ma-report-storage-grid-efficiency

Mercom Capital Group, llc, is a global communications and research and consulting firm focused on cleantech. Mercom delivers market intelligence, and funding and M&A reports covering Battery Storage, Smart Grid and Energy Efficiency, and Solar, and advises companies on new market entry, custom market intelligence, and strategic decision-making. Mercom's communications division helps companies and financial institutions build powerful relationships with media, analysts, local communities, and strategic partners.

Digital Health VC Funding Reaches $7.2 Billion in 9 Mths of 2019 - Mercom Capital

Mercom Capital Group, llc, a global communications and research firm, released its report on funding and mergers and acquisitions (M&A) activity for the Digital Health (Healthcare Information Technology) sector for the third quarter (Q3) and first nine months (9M) of 2019. Mercom’s comprehensive report covers deals of all sizes from across the globe.

Global Venture Capital (VC) funding - including venture capital, private equity, and corporate venture capital - for Digital Health companies in 9M 2019 was 10% lower year-over-year (YoY) with $7.2 billion in 474 deals compared to $8 billion in 556 deals in 9M 2018. In Q3 2019, Digital Health companies raised $2 billion in 156 deals compared to $3.1 billion in 173 deals in Q3 2018, a 35% decline.

Digital Health companies have now received ~$42 billion in VC funding in 4,622 deals, according to Mercom.

Total corporate funding (including VC, public market, and debt financing) in 9M 2019 declined 19% with $8.9 billion compared with $11 billion in 9M 2018. Total corporate funding in Q3 2019 was down slightly with $3.4 billion compared to $3.6 billion Q3 2018.



“After a strong Q2, funding and M&A activity slowed in the third quarter and financial activity is lagging compared the same period of last year. The performance of the much anticipated four digital health IPOs at the end of Q3 has been disappointing and the fate of future IPOs may depend on how well these companies fare,” said Raj Prabhu, CEO of Mercom Capital Group. “Large deals continued to dominate with six companies raising half of all the funding in the third quarter."

Healthcare Practice-focused companies received $599 million in 60 deals and accounted for 29% of the total $2 billion VC funding in Q3 2019, compared to Q3 2018 when $1.3 billion was raised in 62 deals and accounted for 40% of the total $3.1 billion VC funding. Consumer-centric companies raised $1.4 billion in 96 deals and accounted for 71% of total VC funding in Q3 2019, compared to Q3 2018 when $1.9 billion was raised in 111 deals and accounted for 60% of the total $3.1 billion VC funding.

The top funded categories in 9M 2019 were: Telemedicine with $1.5 billion, Analytics with $1.3 billion, and mHealth Apps with $1 billion. Other Digital Health categories that received substantial funding were: Healthcare Service Booking $487 million, Mobile Wireless $437 million, and Clinical Decision Support with $425 million.



The top Digital Health VC deals in 9M 2019 included: $550 million raised by Babylon, followed by $250 million raised by Tencent Trusted Doctors, and $205 raised by Collective Health. Capsule and Tempus brought in $200 million each.



Digital Health VC funding deals came out of twenty-one different countries in Q3 2019.

Digital Health debt and public market financing in 9M 2019 was down 40% with $1.7 billion in 18 deals, compared to the $2.9 billion raised in 18 deals in 9M 2018.

There were four Digital Health IPOs in Q3 2019 in the United States raising $1.2 billion: Change Healthcare raised $557 million, followed by Livongo Health with $335 million, Health Catalyst with $182 million, and Phreesia $167 million.

In 9M 2019, there were 125 Digital Health M&A transactions compared to 172 transactions in 9M 2018. M&A activity in Q3 2019 was also down with 34 M&A transactions compared to the 56 M&A transactions in Q3 2018.

mHealth App companies were involved in the most M&A deals in 9M 2019 with 21 transactions, followed by Analytics and Practice Management Solutions with 12 and 10 transactions respectively. Clinical Decision Support and Telemedicine companies each had nine transactions. Consulting and Health Information Exchange companies each had six transactions.

Top M&A transactions in 9M 2019 included: French company Dassault Systemes’ acquisition of Medidata for an enterprise value of $5.8 billion. The EQT VIII Fund (EQT) and Canada Pension Plan Investment Board (CPPIB) acquired Waystar for $2.7 billion, followed by Golden Gate Capital, which acquired a controlling stake in Ensemble Health Partners for $1.2 billion. Baring Private Equity Asia acquired CitiusTech for more than $1 billion, Nordic Capital acquired ArisGlobal for $700 million, JPMorgan Chase acquired InstaMed for $500 million, and Thomas H. Lee Partners (THL) acquired Nextech Systems for $500 million.

This report is 94 pages in length, contains 69 charts, graphs and tables, and covers 513 investors and companies.

Mercom’s comprehensive report covers deals of all sizes across the globe.

Full report - https://mercomcapital.com/product/9m-and-q3-2019-digital-health-healthcare-it-funding-and-ma-report

Global Digital Health VC Funding in July-Sept' 2018 Reaches Record $8 Bn

Mercom Capital Group, llc, a global communications and research firm, released its report on funding and mergers and acquisitions (M&A) activity for the Digital Health (Healthcare Information Technology) sector for the third quarter (Q3) and first nine months (9M) of 2018. Mercom’s comprehensive report covers deals of all sizes from across the globe.

Global VC funding for Digital Health companies in 9M 2018 was 46 percent higher year-over-year (YoY) with a record $8 billion raised in 556 deals compared to the $5.5 billion in 586 deals in 9M 2017. Another annual record will be set in 2018 as the $8 billion has already surpassed the previous high mark of $7.2 billion raised in all of 2017. A new record was also set in Q3 2018 with VC funding coming to $3.1 billion in 173 deals surpassing the $2.4 billion raised in 196 deals in Q2 2018.

Digital Health companies have now received ~$34 billion in the 4,006 VC funding deals, according to Mercom.

There were 12 Indian Healthcare IT companies that received VC funding in Q3 2018.



“For the first time, we saw funding cross $3 billion in a single quarter in digital health and funding raised year-to-date has already surpassed all of 2017 with a realistic chance of hitting $10 billion this year. The sector has significant momentum and substance behind this record funding, from regulatory support to entry of large tech and healthcare companies – including a slew of intellectual property applications and FDA approvals,” said Raj Prabhu, CEO of Mercom Capital Group.



Healthcare Practice-focused companies received 40 percent of the funding in Q3 2018, raising $1.3 billion in 62 deals compared to $702 million in 58 deals in Q2 2018. Healthcare Consumer-centric companies accounted for 60 percent of the funding in Q3 2018, raising $1.9 billion in 111 deals compared to $1.7 billion in 138 deals in Q2 2018.

The top funded areas in 9M 2018 were: Data Analytics with $1.8 billion, Telemedicine with $1.1 billion, mHealth Apps with $1 billion, Mobile Wireless with $728 million, Clinical Decision Support with $655 million, Wearables for $457 million, and Wellness with $318 million.



The top funded categories in Q3 2018 were: Data Analytics with $889 million, mHealth Apps with $504 million, Mobile Wireless at $456 million, Telemedicine companies with $374 million, Wearables with $149 million, Social Health Networks with $148 million, and Wellness with $117 million.



There were 68 early stage deals in Q3 2018, including one accelerator/incubator deal.

The Top VC deals in 9M 2018 included: $300 million raised by 23andMe, $291 million raised by American Well, $250 million by Butterfly Health Network, $240 million raised by Heartflow, $200 million raised by Helix, and $200 million raised by SomaLogic.



A total of 1,132 investors participated in digital health funding deals in 9M 2018.

Twenty-four different countries recorded Digital Health VC funding deals in Q3 2018.

The pace of M&A activity year-to-date is slightly ahead of last year. In 9M 2018, there were a total of 172 Digital Health M&A transactions, compared to 146 in 9M 2017. M&A activity in Q3 2018 was down with 56 M&A transactions (nine disclosed) compared to the 68 M&A transactions (13 disclosed) in Q2 2018.

mHealth App companies were involved in the most M&A deals in Q3 2018 with eight transactions followed by Data Analytics and Practice Management Solutions with six deals each, then Digital Health Service Providers with three deals.

Top M&A transactions in 9M 2018 included: Platinum Equity’s acquisition of LifeScan for $2.1 billion, Roche’s acquisition of Flatiron Health for $1.9 billion, Inovalon’s acquisition of ABILITY Network for $1.2 billion, Veritas Capital’s acquisition of General Electric’s (GE) Healthcare IT division for $1 billion, and Bestbuy’s acquisition of Greatcall for $800 million.

Full Report: https://mercomcapital.com/product/9m-and-q3-2018-digital-health-healthcare-it-funding-and-ma-report/

Startup Funding in India To Improve This Year; Thanks To Flipkart, Here's Why

In 2016, startup funding in India was dropped by 50% from 2015 while Mumbai startups saw 44% drop in funding deals in the same year and in 2017 early-stage startup funding shrunk sharply -- these were some of the reports which were making headlines for last couple of years. The funding crunch was so loud that in 2016 US-based Tiger Global, which was one of the most active investment body in India in 2015 with more than 30 investments, had almost retreated from India as it did not make any new investments in 2016.

Now, what could be seen as big sigh of relief for both early-stage and late-stage startups in India, funding in the country may bounce back to its happy days again this year as secondary share sales, strong performances by Flipkart and other large internet firms and an expanding internet user base drive an improvement in investor sentiment. Now, how Flipkart alone can improve funding for entire startup ecosystem of India ?, we'll see that further in this article.

The funding market has definitely improved in the past few months and deal volume may increase by 50% or so from last year, said a Live Mint report, quoting Anand Lunia, managing director at India Quotient, an early-stage VC firm. Over the past nine months, secondary share transactions have become a major source of generating returns and this is helping investors.

Investors pointed out that funding boom and crunches happen in cycles. After a cascade of investments in 2010-2011, startups had to struggle for nearly three years until the middle of 2014. That upturn lasted for 18 months till investors pulled back at the end of 2015. Now, investors are slowly regaining the confidence to start investing heavily again.

One of the reasons behind the steep drop in funding was the fear that homegrown startup duo -- Flipkart and Ola, which have taken up a large amount of the capital invested into all Indian startups, would lose out to their rivals -- Amazon and Uber. The startup duo however bounced back strongly over the past 18 months and this has helped boost the investor outlook and winning back the confidence on the entire Indian startup ecosystem.

Additionally, an another big factor for an improvement in startup funding is again 'Flipkart', according to which the American retailer Walmart Inc may acquire 15-20% stake in Indian e-commerce giant amounting nearly $7 billion. If the deal goes through, many top-notch startup investors including Tiger Global Management, Accel Partners and Naspers will see massive gains on their investments and this will further allow them to run a funding spree again.

However, there are still quite a few factors that could create hurdles for improvement in funding volume. While investor appetite may increase, they may not find enough companies to place bets on. IndianWeb2 had reported in October that the number of new internet and technology start-ups launched in the first nine months of 2017 had slumped to 800 from more than 6,000 in 2016 - a worrying sign for the next two years. Additionally, macro-economic and political factors such as an interest rate hikes in the US, the performance of stock markets (for domestic LPs) and the national elections next year could affect start-up funding.

"The funding market will improve this year for sure but for a 2015-type of scenario to happen again, the number of VC firms will have to increase and the startup formation will also have to increase dramatically. I personally think that in the second half of 2019 and 2020, we could see another bubble,” said Lunia.

In 2016, e-commerce sector witnessed a massive 50% cut in fund raising. In 2017, secondary share sales worth thousands of crore of rupees in startups including Flipkart, Paytm, Ola, Lenskart and others have provided funds with desperately-needed returns. These deals helped VC firms prove to limited partners – large investment firms that put money into VCs – that start-up investments in India could be lucrative even though returns take longer to materialize compared with the US and China.

As the consumer internet market adds millions of new users every year with faster and cheaper data, opportunities are opening up for new types of digital businesses.

PE/VC Investments At Record High of $8.7 Billion in Jul-Sep

In what could be considered as an excellent news coming in for the Indian startup industry, private equity/venture capital (PE/VC) investments in the ecosystem reached a whopping $8.7 billion in the September quarter, a figure which is significantly higher than what was recorded for the same period last year.

According to a report by research company Ernst and Young (EY), the sector saw its PE/VC investments for the quarter July-September increase from $3.1 billion in the same period last year to a record high $8.7 billion this year. The report highlighted that this sharp increase was largely courtesy the big-ticket transactions that took place over the said period.

In total, the ecosystem witnessed a total of nine $200-million-plus deals in the July-September 2017 quarter, with SoftBank’s $2.5 billion investment in Indian ecommerce giant Flipkart being the largest PE investment ever recorded in the Indian subcontinent.

In August, Flipkart raised the second portion of its Series J funding from SoftBank Group. The $2.5B investment by the Japanese telecom and internet giant was a part of its $93 billion Vision Tech Fund, which is considered as the world's biggest private equity fund.

The EY report further revealed that not only did PE/VC investments saw a sharp jump in the July-September quarter, but the period also saw record exits for PE players and the largest IPO exits ever recorded in the history of Indian startup ecosystem.

According to the report, exists registered on a year-on-year basis saw an increase of a staggering 128 per cent in value terms at $4.7 billion across 65 deals. The EY report noted that this number was largely driven by exits via open market, secondary sale and IPOs.

The quarter also recorded the largest IPO exits ever with Fairfax selling its 12 per cent stake in ICICI Lombard for a celebratory $558 million.

Speaking to PTI, Vivek Soni, partner and leader for PE Advisory, EY said, “India is clearly maturing as a PE market, with bigger and complex deals becoming more common. Greater numbers of large deals and buyouts support this thesis, and it is clearly visible in the third quarter 2017 investment numbers.”

Commenting on the increase in the number of IPO exits and exits of PE players, Soni added, "The good news is that there is a massive amount of dry powder available globally and most global funds are now keenly looking at India for investment opportunities. The compulsion of corporate India to deleverage by selling assets is expected to add momentum to the growth of buyout deals in India.”

In August, another EY report had highlighted PE/VC investments in the Indian subcontinent had reached a record USD 11.2 billion in the first half of this calendar year. This meant, the country witnessed a whopping 41 per cent increase over last year driven by some big ticket deals.

This development was first reported in Business Standard.

PE/VC Investments At Record High of $8.7 Billion in Jul-Sep

In what could be considered as an excellent news coming in for the Indian startup industry, private equity/venture capital (PE/VC) investments in the ecosystem reached a whopping $8.7 billion in the September quarter, a figure which is significantly higher than what was recorded for the same period last year.

According to a report by research company Ernst and Young (EY), the sector saw its PE/VC investments for the quarter July-September increase from $3.1 billion in the same period last year to a record high $8.7 billion this year. The report highlighted that this sharp increase was largely courtesy the big-ticket transactions that took place over the said period.

In total, the ecosystem witnessed a total of nine $200-million-plus deals in the July-September 2017 quarter, with SoftBank’s $2.5 billion investment in Indian ecommerce giant Flipkart being the largest PE investment ever recorded in the Indian subcontinent.

In August, Flipkart raised the second portion of its Series J funding from SoftBank Group. The $2.5B investment by the Japanese telecom and internet giant was a part of its $93 billion Vision Tech Fund, which is considered as the world's biggest private equity fund.

The EY report further revealed that not only did PE/VC investments saw a sharp jump in the July-September quarter, but the period also saw record exits for PE players and the largest IPO exits ever recorded in the history of Indian startup ecosystem.

According to the report, exists registered on a year-on-year basis saw an increase of a staggering 128 per cent in value terms at $4.7 billion across 65 deals. The EY report noted that this number was largely driven by exits via open market, secondary sale and IPOs.

The quarter also recorded the largest IPO exits ever with Fairfax selling its 12 per cent stake in ICICI Lombard for a celebratory $558 million.

Speaking to PTI, Vivek Soni, partner and leader for PE Advisory, EY said, “India is clearly maturing as a PE market, with bigger and complex deals becoming more common. Greater numbers of large deals and buyouts support this thesis, and it is clearly visible in the third quarter 2017 investment numbers.”

Commenting on the increase in the number of IPO exits and exits of PE players, Soni added, "The good news is that there is a massive amount of dry powder available globally and most global funds are now keenly looking at India for investment opportunities. The compulsion of corporate India to deleverage by selling assets is expected to add momentum to the growth of buyout deals in India.”

In August, another EY report had highlighted PE/VC investments in the Indian subcontinent had reached a record USD 11.2 billion in the first half of this calendar year. This meant, the country witnessed a whopping 41 per cent increase over last year driven by some big ticket deals.

This development was first reported in Business Standard.

Startup Accelerator 'Zone Startups India' Turns To VC Funding Body

The year 2017 has seen a number of early-stage funds being launched in the Indian startup ecosystem. The latest to join the grind is private accelerator Zone Startups India, a new early-stage venture capital funds.

Zone Startups India is the Mumbai location of the famous Toronto-based Ryerson Futures Inc. – the technology accelerator and investment arm of Ryerson University. Zone Startups India is a collaboration between BSE Institute (a subsidiary of the Bombay Stock Exchange), Ryerson University’s Digital Media Zone (incubator), Ryerson Futures Inc and Simon Fraser University, British Columbia, Canada.

The Mumbai-based private accelerator, which accommodates over 55 desks and houses 60 startups, is looking to offer Indian startups with state of the art workspace, mentorship – functional, business experts and industry Panel, market development and business development support, networking and branding opportunities, funding opportunity, access to North American market and peer-to-peer mentoring.

The Zone Startups India Fund, which has a corpus of Rs 190 crore, is looking to raise capital from Indian institutional accounts. Speaking to Economic Times, Ajay Ramasubramaniam, director of Zone Startups India said, "We expect to make the first close in the next two to three months, and by the end of the year, the entire fund should be ready."

The Fund is aiming to create an impressive portfolio of 8-15 companies over the period of next one year. According to Zone Startups India, the category 1Alternative Investment Fund will be doing deals within ticket sizes ranging from Rs 50 lakh to Rs 3 crore.

The sectoral preference for the fund will be technology with a special inclination towards software companies working with mobile technology and enterprise technology. "B2B is the bigger focus but we would also look at good B2C companies with a proven track record and (those that) have already raised one round of funding," added Ramasubramaniam to ET.

The Indian startup industry has had a couple of rough years when it comes to investments and funding. Continuing last year's slump, angel and seed investments in Indian startups saw a downward trend both in terms of volume and value with the total number of deals reducing to almost half of what was witnessed for the same period last year. According to data from VCCEdge, January-March 2017 saw just 120 investments deals happening in the Indian startup industry, compared to 245 in the same period last year with Series-A funding decreasing by sad 65 per cent in deal value on a year-on-year basis. However, industry experts are hopeful that the tide would soon change in industry's favour as the exit scenario in India's unicorns will most likely bring back the lost faith of investors in the Indian startup ecosystem.

In his interview with ET, Ramasubramaniam also revealed that Zone Startups India is working on a couple of other things besides the micro venture capital fund. The Founders First focussed technology incubator and accelerator has recently received a grant of a whopping Rs 10 crore from Indian government's Department of Science and Technology to invest in 10-15 Indian companies that are part of its accelerator programme over the next 12 months. The ticket sizes for these deal would range from Rs 30 lakh to Rs 1 crore.

VC Funding In Agri-Tech Startup Ramping Up In India

Agriculture has always been the backbone of India. It has been the primary occupation of almost 80 percent of Indians since long. The Indian startup industry understood this dependency of the estate on the field very well and came up with a lot of ventures in order to cash on this dependency. And, now these agri based start-up firms have caught the fancy of the Venture Capital funds.

According to Omnivore Partners, a venture capital firm focused on agriculture and food-tech, "Venture capital funding in agri start-up firms is picking up in India and is expected to increase in the coming years." It associates this increase in VC funding to the lack of institutional funding through banks and Non- Banking Financial Company (NBFC). Apparently, this lack of institutional funding has prompted the entrepreneurs of these startups to go for venture capital even at a high cost.

Speaking to the PTI on the occasion of a CII event, Jinesh Shah, a Founding Partner at the Mumbai-based Omnivore Parters said, "There has been increase in VC funds flowing in start-up companies operating in the field of agriculture. We have made investment in atleast 11 firms including weather forecasting company Skymet."

The 11 companies in which the investments have been made cater to precision farming, farm mechanisation, sustainable farming, and innovative foods.

"We are currently investing between Rs 5,00,000 and Rs 30,000,000 in agri-start up companies, which we plan to scale up to Rs 60,00,000 in the coming years," added Shah.

However, the number of agri based startups is much lower when compared to the number of startups in the technology and e-commerce sector. The main reason for this huge disparity in the numbers is because there are too many problems in the entire value chain of agriculture.

Sequoia Capital to invest whooping $530 million exclusively in India

One of the oldest VC firm in the world Sequoia Capital has raised $530 million for its fourth India-focused fund, taking its total investments in the country to nearly $2 billion reports Venturebeat

Established in 1972 Sequoia Capital is one of the silicon valley's oldest VC firm and known for investing in seed stage, start-up stage, early stage, and growth stage companies and has even backed big names like Google, Apple, YouTube, Yahoo and WhatsApp in their early times.

The newly raised funds by Sequoia will primarily be focused mainly on technology, healthcare, and consumer-oriented business for companies from seed to growth levels.Sequoia Capital has invested in over 75 companies of India and these include Capillary Technologies, Druva, Just Dial, Micromax, Mu Sigma, Pine Labs, Prataap Snacks, Quickheal, SCIO Analytics, Star Health, Stovekraft, Truecaller, UnitedLex, Vasan, Vini Cosmetics, Via and Zomato.

Sequoia estimates that 19% of the NASDAQ’s value is made up of firms that they have invested in. The VC firm invests between $100,000 and $1 million in seed stage, between $1 million and $10 million in early stage, and between $10 million and $100 million in growth stage.

A Sequoia press release stated:

Sequoia Capital has now been investing in India for 8 years and has invested in over 75 companies. Many of these companies are category leaders. These include Capillary Technologies, Druva, Just Dial, Micromax, Mu Sigma, Pine Labs, Prataap Snacks, Quickheal, SCIO Analytics, Star Health, Stovekraft, Truecaller, UnitedLex, Vasan, Vini Cosmetics, Via and Zomato.

Sequoia has been quoted by Wall-Street, as one of Silicon Valley's most influential venture-capital firms has invested almost all big brands in India such as - Micromax, Justdial, Zomato or Druva.

The amount of funding pouring in India has ramping up gradually, with this year the investments made by foreign based funders and VC firms are almost double of previous year. Almost every week every a startup is being funded especially in web and e-commerce section.

Except India, VC Funding at the Start-up stage Drops across Countries

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.

Optimizely Raises $57 Million to Enable the World to Turn Data into Action

Website optimization company Optimizely announced yesterday that they raised $57 million in Series B funding led by Andreessen Horowitz with participation from Benchmark Capital and Bain Capital Ventures.

Optimizely has achieved triple digit year-over-year (y-o-y) growth in annual revenue since launching in 2010 and company claims to be no.1 website optimization platform in the world.

Last year Optimizely had raised $28 million led by Benchmark Capital with participation by Bain Capital Ventures, Battery Ventures, InterWest Partners, and Google Ventures. Optimizely is from YCombinator batch of 2010.

The company have a team of just 175 people with plans to grow to over 250 by the end of the year. The company optimized over 7 billion web experiences for over 7,000 customers located in 101 countries.

Optimizely was founded by two former Google product managers, Dan Siroker and Pete Koomen. Moreover, co-founder Dan Siroker served as the Director of Analytics during the Obama 2008 presidential campaign.

From March 2012 to March 2013, Optimizely increased its revenue by more than 400% percent year-over-year. It first reached cash flow positive in 2011.

The funding source Andreessen Horowitz is a $2.5 billion venture capital firm, founded in 2009 by Marc Andreessen and Ben Horowitz. Apart from Optimizely the VC firm always had high-profile portfolio companies such as Facebook, Pinterest, Skype, Groupon, FourSquare, Box.net and Zynga.