Though a substantial corpus was available, less than 30% are expected to be utilised. This works out to about 0.2% or 0.002 of the GDP of India as
compared to the Asia-Pacific average of 0.09%, a worldwide average of 0.5%, and a far cry from the highly developed North American VC market, which was having a size of 1.0% of GDP in 1999. From all of the above it would seem that the VC industry is in the nascent stage of development and avenues for investment have been limited. As the economy develops
VC funding is likely to grow. Simultaneously, VC funding in itself will be one of the engines of growth, as evidenced in developed markets like the USA. As such government would be well advised to create an environment
for facilitating the development of the VC culture. |
VCs had a corpus size of under USD 25m and a similar percentage were having a corpus
of between USD 50-75m. Most (77%) were having a corpus of less than USD 75m.
investments higher than USD 20m. Total
investments of roughly USD 500m (1/6th of the total corpus) were made.
5m while as many as 77% expect to invest below USD 30m. The size of
an average investment is expected to be in the region of USD 3m (total of around 300 deals during the year).
