Venture Capital firms invested $117 million over 27 deals in India

Venture Capital firms invested $117 million over 27 deals in India during the six months ending June 2009, according to a study by Venture Intelligence in partnership with the Global-India Venture Capital Association. The amount invested during the period was lower compared to H1 2008 which had witnessed $413 million being invested across 67 deals. “While the uncertainty in global financial markets over last six months has affecting VC investing in India as well, there are clear signs of revival over the last couple of months – especially in emerging markets like India,’’ said Sudhir Sethi, Director of GIVCA and Founder, Chairman & Managing Director of IDG Ventures India. With 14 investments worth about $75 million Information Technology and IT-Enabled Services (IT & ITES) companies accounted for about 52% of the deals (63% in value terms) during H1 2009. Within IT & ITES, Online Services companies retained their status as the favorite sector accounting for over 57% of the investments (by volume) within the industry during H1 2009.

Domestic demand driven sectors like Financial Services (especially microfinance), Healthcare and Education are the other industries that continue attract VC attention, the GIVCA/Venture Intelligence research shows. Early-Stage deals (First / Second Round of VC investments into companies that are less than five years old) accounted for two-thirds of the VC investments (and 57% in value terms) during H1 2009.