Venture capital firm investments fall by 72 per cent in first half of 2009

Investments from venture capital (VC) firms have fallen by 72 per cent in the first half of this year compared to the same period last year, a study by Chennai-based Venture Intelligence and Global India Venture Capital Association reveals.

VC firms committed $117 million in 27 deals as compared to $413 million in 67 deals for the first half in 2008.

''The uncertainty in global financial markets over the past six months has affected VC investing in India as well,'' said Global India Venture Capital Association director Sudhir Sethi.

He added that there were signs of recovery in the last few months.

Most of the deals were in the IT and IteS sectors, amounting to 52 percent of total deals. These deals accounted for 63 percent of the investments with a total of $75 million.

The most attractive area for investment remained online service companies, apart from financial services, healthcare and education.