The study of Bain & Company states that the Venture Capital industry has $7 billion left to invest having distributed $10 billion across India’s startup ecosystem.

The global management consulting firm expects Asia’s third-largest economy to remain strong despite continuing economic variability across the world, indicating the tenacity of its rising digital economy

The VC investment in 2019 was focused 80 per cent in four categories consumer technology, software technology, fintech, Saas and B2B commerce and technology. 35 per cent

of the total investments was captivated by consumer technology

India’s startup and VC ecosystems continue to flourish globally as investor’s take long term view based on the country’s growth potential as they see the current falloff as more recurring than structural.

The fund raised $2.1 billion in 2019 lower than the previous years $2.7 billion. The reason behind the fall in fundraising was because some investors focused on the investment of new vehicles which did not hit the market in 2019. The investment per fund in 2019 was $26 million.

Series A and Series B rounds rose by about 71 per cent and 31 per cent to $1.2 million and $8.2 million, respectively.
New investors such as Tanglin Ventures, A91 partners, As well as Corporate Venture firms including Samsung Ventures, expressed the on-going interest of global Limited Partners and fund managers in parking capital in the country.

The Exits which have been low for VC investors in India rose in 2019, through the secondary or strategic sale route and through buybacks. The number of exits recorded in 2019 at 132 deals was fewer compared with 170 transactions the year before.