VC Investments In Indian Tech Scene Hits 4 Year High, Share of US VCs Investing Declines

VC Investments In Indian Tech Scene Hits 4 Year High, Share of US VCs Investing Declines

According to the recent report by Nasscom, the total number of technology product/digital startups in India is projected to be about 11,500 by 2020. With the massive increase in the tech investments in India, this number is expected to be much higher. Many Indian tech startups have managed to raise huge funding rounds this year including Flipkart’s $1 Bn funding then within few months raising another massive round, Snapdeal’s funding from SoftBank etc. to name a few.

These fundings shows how the Indian tech scene has started attracting VC attention.

In India, startups have attracted about 300 venture capital/private equity deals and 225 angel investment deals worth over $2.3 Bn since 2010 and over 20 mergers & acquisitions worth $1 Bn in the last 3 years.

Related: Here’s Why India Is Going To Be The Next Silicon Valley!

According to a recent report by CB Insights, in 2014, 71 different VC investors (VC and Corporate VC) have made an investment in an Indian tech company, which is more than prior 4 years, and 22% higher than all of 2013. This makes it 4th straight year of growth in terms of the number of VCs making investments in India’s tech scene.

unique vcs investing in india

However, the share of US-based VCs investing in India has declined since 2010. In 2010, US based VCs investments in India accounted for over 2/3 of all VCs investing. Since then, the share of US-based investors has fallen, in the current year their share is only 39% of all tech deals in the country.

india-unique-vcs-country-share-ytd14

The reason being the growth of India-based VCs investing in India, according to the deals that took place this year, share of India based VCs is about 41% of the total VC investments in the country.

With this, the tech scene in the country has witnessed VCs from over 6 other countries investing in the country and accounting for 14% of the investors.

Let’s have a look at India’s most active VCs since 2009:

india's most active vcs

Note: We at Inc42 take our ethics very seriously. More information about it can be found here.

You have reached your limit of free stories
Become An Inc42 Plus Member

Become a Startup Insider in 2024 with Inc42 Plus. Join our exclusive community of 10,000+ founders, investors & operators and stay ahead in India’s startup & business economy.

2 YEAR PLAN
₹19999
₹7999
₹333/Month
Unlock 60% OFF
Cancel Anytime
1 YEAR PLAN
₹9999
₹4999
₹416/Month
Unlock 50% OFF
Cancel Anytime
Already A Member?
Discover Startups & Business Models

Unleash your potential by exploring unlimited articles, trackers, and playbooks. Identify the hottest startup deals, supercharge your innovation projects, and stay updated with expert curation.

VC Investments In Indian Tech Scene Hits 4 Year High, Share of US VCs Investing Declines-Inc42 Media
How-To’s on Starting & Scaling Up

Empower yourself with comprehensive playbooks, expert analysis, and invaluable insights. Learn to validate ideas, acquire customers, secure funding, and navigate the journey to startup success.

VC Investments In Indian Tech Scene Hits 4 Year High, Share of US VCs Investing Declines-Inc42 Media
Identify Trends & New Markets

Access 75+ in-depth reports on frontier industries. Gain exclusive market intelligence, understand market landscapes, and decode emerging trends to make informed decisions.

VC Investments In Indian Tech Scene Hits 4 Year High, Share of US VCs Investing Declines-Inc42 Media
Track & Decode the Investment Landscape

Stay ahead with startup and funding trackers. Analyse investment strategies, profile successful investors, and keep track of upcoming funds, accelerators, and more.

VC Investments In Indian Tech Scene Hits 4 Year High, Share of US VCs Investing Declines-Inc42 Media
VC Investments In Indian Tech Scene Hits 4 Year High, Share of US VCs Investing Declines-Inc42 Media
You’re in Good company