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Investment Trends in Venture Capital and Private Equity in India

  • Poonam DugarEmail author
  • Nirali Pandit
Chapter

Abstract

A horde of favourable events and macroeconomic conditions over a period of time have shaped the investment climate in India. Financial globalization, growth in savings and increasing risk appetite among global investors over a period of time, gave birth to a new source of corporate finance known as the venture capital and private equity. The role of VCPE investments in stimulating innovation and growth in India cannot be undermined. VCPE investments seem to have grown but whether they have impacted all industries or only a few remains to be assessed. This study makes an attempt to analyse the trends of the VCPE investments in India during the past two decades (1998–2016) and its concentration in various industries of the economy, as well its distribution across various stages of financing. The findings of the study show the impact of various factors (both global and national level) on the growth of VCPE investments in India. It also reflects the concentration of VCPE investments in certain industries of the economy and the changing trends across stages of funding from early and seed stage to late stages of investments. The regression model reveals a significant impact of the volume of deals on the VCPE investments.

Keywords

Venture capital Private equity Trends Stage-wise investments 

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Copyright information

© Springer Nature Singapore Pte Ltd. 2018

Authors and Affiliations

  1. 1.Finance Accounting & Control Area, Amrut Mody School of ManagementAhmedabad UniversityAhmedabadIndia
  2. 2.Entrepreneurship Development Institute of IndiaAhmedabadIndia

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