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Venture capital firms invest USD117m in India during first half

Venture capital firms invested USD117m over 27 deals in India during the six months ending June 2009, according to a study by Venture Intelligence in partnership with the Global-India V

Venture capital firms invested USD117m over 27 deals in India during the six months ending June 2009, according to a study by Venture Intelligence in partnership with the Global-India Venture Capital Association.

The amount invested during the period was lower compared to H1 2008 which had witnessed USD413m being invested across 67 deals. 

‘While the uncertainty in global financial markets over last six months has affecting VC investing in India as well, there are clear signs of revival over the last couple of months – especially in emerging markets like India,’ says Sudhir Sethi, director of GIVCA and founder, chairman and managing director of IDG Ventures India.

With 14 investments worth about USD75m IT and IT-enabled services companies accounted for about 52 per cent of the deals (63 per cent in value terms) during H1 2009. Within IT and ITES, online services companies retained their status as the favourite sector accounting for over 57 per cent of the investments (by volume) within the industry during H1 2009. 

Domestic demand driven sectors like financial services (especially microfinance), healthcare and education are the other industries that continue attract VC attention, the GIVCA/Venture Intelligence research shows.

Early-stage deals accounted for two-thirds of the VC investments, and 57 per cent in value terms, during H1 2009.

The Global India Venture Capital Association (formerly US-IVCA) is a non-profit organisation established in California in June 2002. It is an association of US-based venture capitalists interested in US-India cross-border investments.

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