VENTURE CAPITAL INVESTMENTS IN TECH STARTUPS- AN OVERVIEW
DOI:
https://doi.org/10.29121/shodhkosh.v5.i7.2024.3161Keywords:
Venture Capital, Startup India, Credit Guarantee Plan For Startups (Cgss), International Finance Corporation (Ifc), Ai Enables Saas [Software- As- A- Service] ProvidersAbstract [English]
Venture capital funding in India surged 50.4% year over year to $8.3 billion in the first three quarters of 2024. This resulted from an increase in transactions for above $100 million each in VC investments in Indian startups declined considerably, totalling more over $8 billion as opposed to more than $18 billion in 2022. Additionally, there were 472 agreements in 2023 compared to 815 in 2022. Seed stage, early stage, and later stage are the three segments of the Indian venture capital sector. Accel and Sequoia Capital are prominent participants in the market in 2024. According to research by Global Data, venture capital (VC) spending in India surged 50.4% year over year to $8.3 billion in the first three quarters of 2024. The jump was ascribed by the data analytics and consultancy organisation to a boost in transactions valued above $100 million each. Between January and September 2024, 883 deals were announced, reflecting a 7.3% increase in volume over the same period in 2023. Between 2023 and 2024, the stated value of these transactions climbed from $5.5 billion to $8.3 billion. According to GlobalData, the growth was boosted by high-value transactions, such as $665 million and $340 million raised by Zepto in two different investment rounds, $300 million by Meesho, $216 million by PharmEasy, and $210 million by PhysicsWallah. The present study is to explore the Venture capital in Tech startups in India.
References
Dossani, R., & Kenney, M. (2002). Creating an environment for venture capital in India. World Development, 30(2), 227-253. DOI: https://doi.org/10.1016/S0305-750X(01)00110-3
ETtech. (2024, July 23). Economic Survey: India saw tech startups surge post Covid pandemic. The Economic Times. https://economictimes.indiatimes.com/tech/startups/economic-survey-india-saw-tech-startup-surge-post-covid-pandemic/articleshow/111931855.cms?from=mdr
Bertoni, F., Colombo, M. G., & Grilli, L. (2011). Venture capital financing and he growth of high-tech start-ups: Disentangling treatment from selection effects. Research policy, 40(7), 1028-1043.
Bertoni, F., Colombo, M. G., & Grilli, L. (2011). Venture capital financing and the growth of high-tech start-ups: Disentangling treatment from selection effects. Research policy, 40(7), 1028-1043. DOI: https://doi.org/10.1016/j.respol.2011.03.008
Hegeman, P. D., & Sørheim, R. (2021). Why do they do it? Corporate venture capital investments in cleantech startups. Journal of Cleaner Production, 294, 126315. DOI: https://doi.org/10.1016/j.jclepro.2021.126315
Colombo, M. G., & Grilli, L. (2010). On growth drivers of high-tech start-ups: Exploring the role of founders' human capital and venture capital. Journal of business venturing, 25(6), 610-626. DOI: https://doi.org/10.1016/j.jbusvent.2009.01.005
Negrutiu, C. (2022). Determinants of Venture Capital Investments in Tech Start-UPS. Romanian Economic Journal, 25(84), 31-40. DOI: https://doi.org/10.24818/REJ/2022/84/03
Nuthalapati, C. S., & Singh, K. (2019). Venture capital for technology and innovative startups in India. Asia Pacific Tech Monitor, 20-27.
Montanaro, B., Cavallo, A., Giudici, G., & Ghezzi, A. (2022). Determinants of the exit value in European venture capital-backed technology startups. Competitiveness Review: An International Business Journal, 32(7), 62-84. DOI: https://doi.org/10.1108/CR-03-2021-0032
Prado, T. S., & Bauer, J. M. (2022). Big Tech platform acquisitions of start-ups and venture capital funding for innovation. Information Economics and Policy, 59, 100973. DOI: https://doi.org/10.1016/j.infoecopol.2022.100973
Lahr, H., & Mina, A. (2016). Venture capital investments and the technological performance of portfolio firms. Research Policy, 45(1), 303-318. DOI: https://doi.org/10.1016/j.respol.2015.10.001
Cumming, D., Henriques, I., & Sadorsky, P. (2016). ‘Cleantech’venture capital around the world. International Review of Financial Analysis, 44, 86-97. DOI: https://doi.org/10.1016/j.irfa.2016.01.015
Wang, S., Wareewanich, T., & Chankoson, T. (2023). Factors influencing venture capital perforsmance in emerging technology: The case of China. International Journal of Innovation Studies, 7(1), 18-31. DOI: https://doi.org/10.1016/j.ijis.2022.08.004
Jeong, J., Kim, J., Son, H., & Nam, D. I. (2020). The role of venture capital investment in startups’ sustainable growth and performance: Focusing on absorptive capacity and venture capitalists’ reputation. Sustainability, 12(8), 3447. DOI: https://doi.org/10.3390/su12083447
Malyy, M., Tekic, Z., & Golkar, A. (2019). What drives technology innovation in new space?: A preliminary analysis of venture capital investments in earth observation start-ups. IEEE Geoscience and Remote Sensing Magazine, 7(1), 59-73. DOI: https://doi.org/10.1109/MGRS.2018.2886999
Shetty, K. K. (2017). A comparative study on impact of venture capital financing on startups in India. In International Conference on Education, Humanities and Management (ICEHM-17) March (pp. 14-15).
Rp, S., & Rp, S. (2024, August 8). India’s dynamic startup ecosystem is set to attract $1 billion in new venture funding in 2024. Express Computer. https://expresscomputer.in/news/indias-dynamic-startup-ecosystem-is-set-to-attract-1-billion-in-new-venture-funding-in-2024/114889/#:~:text=As%20per%20the%20report%2C%20India's,are%20offering%20significant%20growth%20opportunities.
EquityMatch. (2023, November 13). VC Investments for Tech Startups: Timing and Strategic Approaches. https://www.linkedin.com/pulse/vc-investments-tech-startups-timing-strategic-approaches-ndo2c
Mahammad Rafee. A Review of India's Technology-Based Start-up Ecosystem, with Particular Reference to Chennai, Tamil Nadu .Int.J.Soci.Sci.Vol.1(1).2024.Pp:24-38. https://doi.org/10.51470/IJSSC.2024.01.01.24
Jain, C. Y. (2024, January 8). Top 20 Venture Capital Firms in India [Actively Investing in 2024]. QuintEdge. https://quintedge.com/venture-capital-firms-in-india/
Tech-startups/overview-of-tech-startups. (2019, June 21). Tech Startups. Retrieved October 25, 2024, from https://fundersclub.com/learn/tech-startups/overview-of-tech-startups/VCs-invest-in-tech-startups/
Mahammad Rafee and Arya Kumar. Emergence of Digital Rupee: Challenges and Opportunities.Int.J.Soci.Sci.Vol.1(1).2024.Pp:7-11. https://doi.org/10.51470/IJSSC.2024.01.01.7
Pirai Mathi. G. The Changing phase of the FMCG Industry with Artificial Intelligence.Int.J.Soci.Sci.Vol.1(2).2024.Pp:41-48. https://doi.org/10.51470/IJSSC.2024.01.02.41
SAMSON R. Digitalization of Business Processes of Enterprises of The Ecosystem of Industry 4.0: Virtual-Real Aspect of Economic Growth Reserves.Int.J.Soci.Sci.Vol.1(2).2024.Pp:21-24.https://doi.org/10.51470/IJSSC.2024.01.02.21
Dr. B. Mahammad Rafee , Prof. Vijayalaxmi Ramesh, Dr. S. Jaber Asan , Dr. Amzad Basha Kolar,Mr. S. Mohammed Zaheed . (2022). A Survey on Implications of Cashless Payments on the Spending Patterns of Urbanites in the Era of Digital India. International Journal of Early Childhood Special Education (INT-JECS), 14(7), 2040–2048. https://doi.org/10.48047/INTJECSE/V14I7.289
Dr.B.Mahammad Rafee , Dr. Amzad Basha K ,Dr. S.Kareemulla Basha , Dr.C.B. Mohamed Faizal. (2021). Impact of Covid-19 on Agricultural Operations in India: An Overview. Turkish Online Journal of Qualitative Inquiry (TOJQI), 12(3), 785–797.
Mahammad Rafee. Digital India and Economic Growth- An Overview.Int.J.Soci.Sci.Vol.1(1).2024.Pp:53-60. https://doi.org/10.51470/IJSSC.2024.01.01.53
A Guide to Venture Capital for Startups. (n.d.). https://www.hubspot.com/startups/venture-capital-for-startups
Ritesh Chhetri and Deepa Sharma .Investor Attitudes towards Socially Responsible Investing in Sikkim: An Awareness Study.Int.J.Soci.Sci.Vol.1(3).2024.Pp:17-26. https://doi.org/10.51470/IJSSC.2024.01.03.17
Venture-Capital-as-an-Investment-Option-for-Tech-Startups. (2022, May 14). Venture-Capital. Retrieved October 25, 2024, from https://fastercapital.com/content/Venture-Capital-as-an-Investment-Option-for-Tech-Startups.html
Disruptive Technologies and Venture Capital. (n.d.). IFC. https://www.ifc.org/en/what-we-do/sector-expertise/venture-capital
Team, S. (2023, August 29). How To Get Venture Capital Funding For Your Startup. Startups.com. https://www.startups.com/library/expert-advice/how-to-get-a-venture-capitalist-to-invest-in-your-startup-startups-co
MyShortlister, & Bojkovska, V. (2022, April 26). 100+ Startup Statistics in 2024. Shortlister. https://www.myshortlister.com/insights/startup-statistics
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2024 Dr.B. Mahammad Rafee, Dr. A.J.Haja Mohideen, Dr.Sogra Khatoon, Dr.S.Mohammed Zaheed
This work is licensed under a Creative Commons Attribution 4.0 International License.
With the licence CC-BY, authors retain the copyright, allowing anyone to download, reuse, re-print, modify, distribute, and/or copy their contribution. The work must be properly attributed to its author.
It is not necessary to ask for further permission from the author or journal board.
This journal provides immediate open access to its content on the principle that making research freely available to the public supports a greater global exchange of knowledge.
