India’s Venture Capital Industry

SEBI (India’s securities market regulator) has been giving some data releases recently. This helps increase transparency and disseminate data on various facets of India’s securities markets. I had posted y’day about activity in India’s Corporate Bond market.

I just found another release on the VC industry in India which mentions where  they are investing and how much? The data is limited to India VC’s and foreign VC registered with SEBI. So far number of VC is 90 and foreign VC is 80. Some observations:

  • Both categories of VCs have increased their investments over the period Sep 06 to Jun 07. Former by 59% and latter by 98.8%.
  • Other is the category which has the maximum share. What does other mean? The categories mentioned seperately are:
    Information technology
    Media/ Entertainment
    Services Sector
    Industrial Products
    Real Estate
  • In Sep 06, real estate had the max share apart from others. This share had gone down in June 07. Why do VCs invest so much in real estate? VCs are supposed to nurture companies in high-tech and innovative products/services. One reason could be that lots of real estate companies have gone for an IPO during Sep 06- June 07 and may be VCs have exited these companies.
  • BioTech, Media, Pharma struggle to get VC eyeballs.
  • Then there are seperate categories liek services and industrial products. Could there be some clarity on that?
  • Real estate contribution has declined over the period and the gains have all beein in others sector. So not much can be analysed.

Anyways, a nice initiative from SEBI to atleast start sharing some data on so many unknown things in India.

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