The VC Market in India

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Flag of India

This year has been a bit rocky for the VC market in many countries, India isn’t alone. Even though times are rocky, it is still a good time to take a look at businesses that are doing well in this economy and those star-ups that are built on innovation and fulfilling a dire need in this day and age. Efraim Landa is an expert in finance and can educate a business that is already formed or a start-up company in just which route it should take.

India’s VC Market’s primary focus is now on “low-entry valuations, significant and tangible value additions to portfolio companies, and most importantly, exits”, according to Business Today.  The Best VC Funding firms are spending a lot more time researching and agreeing upon sound investing decisions, without their decisions being dictated by the normal way of things and the thinking of the larger crowd. 

Funding in private equity and Virtual Capital comes from overseas as well as it does from within India itself. In this industry there are high returns for the initial investment. These high returns are made back through long periods of times. VC firms know and understand clearly what it takes to invest and are prepared and have a specific plan as to how they will receive high profits back in multiplied amounts.

Low returns happen often enough, however. In receiving low return, a VM firm most likely had a high entry involvement within a start-up company. Competitive bidding and multiple investment deals play a big part in low returns happening in the VC market as well. With the talk of low returns, and the market being rocky, hope has arrived. Funds rose after 2005.

Brian Lim, Partner, Pantheon, which has billions of assets in private equity globally, says: “For us India is a promising market. As it stands today, however, it will take more than just the India story.” Experts state that the market just calls for change. Fund managers need to take action by looking at how they did business in the past, how they do business today, and look at their plans for moving forward very closely. The business model of the funds needs to change and long term wise, the industry will flourish.

With funds rising, what firms are leading the charts?

Accel Partners – invested in companies like FlipKart.com, BookMyShow, ZopNow, Bluestone, Forus, UrbanTouch.com, and MobStac

D.E. Shaw Group – invested in companies like Juno Online Services, KB Toys, and eToys.com

General Atlantic – invested in companies like Fourcee, Indusind Bank, Asain Genco, IBS Software Services, and Genpact

New Enterprise Associates – invested in companies like Airworks, FSS, Intellisys, NovaMedicalCenters, and Value First

Draper Fisher Jurvetson – invested in companies like Skype, Path, Feedburner, SugarSync, Mobile365, Box, and Share This

The listed VC firms are performing at great numbers, each at 5 billion or more. With these firms paying close attention to the signs of the times, these experts can still flourish and will continue to flourish in the future. Seek expert advice when looking for investment sources. Efraim Landa will help you make the correct decisions in this uneasy economy.

Published by Efraim Landa

My name is Efraim Landa I am an entrepreneur and an expert in venture capital. I am the co founder of Effi Enterprises, a venture capital firm as well as the co founder and CEO of Gluco Vista, a company that is in the process of developing a non invasive glucose meter for those with diabetes.

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