Desk Innovazione

Italian Trade Agency

Trade Promotion Office of the Consulate General of Italy
E 28, Dhanraj Mahal, CSM Road, Colaba, Mumbai 400 0001 - India
T +91 22 2282 1125/1214 F +91 22 22821085

Introduction
India, fourth in the global VC rankings, saw an increase in invested dollars by 13%, reflecting strong
interest in consumer service sector although the number of rounds fell back slightly. India has invested
capital of 1.8 billion US$ so far in 222 invested rounds with a change of 12.5% from last year with
accounts to 3.7% of VC activity globally.
Across the markets, median deal values in the seed and first round classes fell or saw little change
compared to 2012 bigger investments at the second or later investment stage, when companies are
perceived to be partially de-risked.

Stand of India in Global market

Desk Innovazione
Italian Trade Agency
Trade Promotion Office of the Consulate General of Italy
E 28, Dhanraj Mahal, CSM Road, Colaba, Mumbai 400 0001 - India
T +91 22 2282 1125/1214 F +91 22 22821085

The trend for India shows that there is a rapid increase of investment through the mature stages of
capital investment, In terms of median deal size by stage of development; China and India were larger
than other regions. India was notable at 4.6 times larger than China, which was in second place, and 8.2
times that of the US. Also India is more interested in profitable and revenue generating startup in
comparison to new product development. Later stage VC investing dominates with growth in Angel
participation.
In total of 222 rounds of investment Angel and incubator investment was found to be almost equal.
India are attracting some interest from angel investors and incubators at the product development and
revenue-generation stages, but have seen no reported participation at the start-up stage since 2010.

Top 7 investors in Mumbai

The list in accordance to the number of deals concluded so far. (Invested mostly in ecommerce).
1.
2.
3.
4.
5.
6.
7.

Accel Partners
Helion Venture
Nexus
Tiger Global
Kalaari Capital
IDG Ventures
SAIF

Technology based Venture capitalists (Global)

8. Intel Capital
9. Google Ventures

Desk Innovazione
Italian Trade Agency
Trade Promotion Office of the Consulate General of Italy
E 28, Dhanraj Mahal, CSM Road, Colaba, Mumbai 400 0001 - India
T +91 22 2282 1125/1214 F +91 22 22821085

10. Qualcomm Ventures

These Ventures play a important role in US economy as well as globally.
Major Sectors of investment
Consumer services
Information technology.
Reasons for investment in above sectors
Consumer services has a direct and immediate connection with consumers that offers extremely rapid
feedback on whether investments are likely to pay off, plus a rapid path to value realization compared
to other sectors. This is particularly true of the consumer-facing subsectors such as e-commerce,
internet gaming and web marketing and the mobile interfaces or cloud technologies that support them.
Health care is not popular in Indian immature market, life sciences, biotech, and medical device
technology.

Synopsis
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 to63% of total investment in 2013, down
from 82% in 2012. The year represented a third of total investment more than double the
proportion in 2012. This indicates both that investors continue to be cautious about the early stage,
and companies as they scale.
India is a market primarily driven by services rather than products and the consumer services sector
continues to secure the bulk of VC investment, accounting for more than a 50% share of the total.
Technology principally social, mobile, analytics and cloud remains attractive, while health care
investment in India has almost doubled. With the growing acceptance of the need to make
affordable health care available to all, VC money is being channeled into budget initiatives such as
specialist providers and innovative health care models.

Desk Innovazione
Italian Trade Agency
Trade Promotion Office of the Consulate General of Italy
E 28, Dhanraj Mahal, CSM Road, Colaba, Mumbai 400 0001 - India
T +91 22 2282 1125/1214 F +91 22 22821085

Indias funding ecosystem is evolving at pace. As the number of people with high levels of disposable
income increases, crowd funding is expected to generate more interest and angel funding is clearly
becoming more established.
Over the last 2 years, the percentage of angel and incubator participation in India at 16% in 2013,
up from 3% in 2011 has been bettered in just one other hotbed: Canada, with 19% in 2013.

CONCLUSION
Indian investors are interested in revenue generating services mostly involved in information
technology and e-commerce segment and the demographics of past years reflects a positive
increase of investment by angel and venture capitalist with emerging incubator fundings.