VC firms invest over $540 million in India during 2007

29 January 2008

Mumbai: Venture Capital firms invested $543 million across 98 deals in India during 2007, according to a study by Venture Intelligence in partnership with the US-India Venture Capital Association.

The amount invested during 2007 was slightly higher compared to 2006, which witnessed 94 deals totalling $500 million.

''With early stage investments accounted for about 66 per cent of all investments during the year, the resurgence in seed and first round investments has been a key highlight of 2007,'' said Arun Natarajan, founder and CEO of Venture Intelligence.

Over 50 per cent of the VC investments during 2007 were below $5 million, including 23 per cent below the $2 million threshold, the US-IVCA/Venture Intelligence study showed. 

''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,'' remarked Sudhir Sethi, Director of US-IVCA and founder, chairman and managing director of IDG Ventures India.

With 65 investments worth about $377 million, the information technology and IT-Enabled Services (IT & ITES) industry retained its status as the favourite among VC investors during 2007.