Indian VC Investments fell by 30 pct in 2012
Bangalore: The last year 2012, saw 206 deals taking place between venture capitalists and startups. It is 30% less than that of the previous year 2011 which saw 222 deals getting cracked. This contraction has created a vacuum for startups wanting to shape their growth strategies. VCs invested $1,094 million in 2011 which came down to $762 million in 2012.
Investments in IT/ITeS companies led the deal table accounting for $381 million across 133 deals last year, but dropped from $558 million in 2011. The value of deals in healthcare and life sciences dipped to $98 million from $120 million.
The steep fall in venture money is credited to slower pace of investments in Series A and B rounds compared to seed funding. "Though VCs pumped in a lot of seed money, the pace of subsequent rounds of funding slowed down last year. Cheques over $1 million are not easy to come by," said Shekhar Kirani, partner in VC firm Accel Partners.
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