Evalueserve has come out with a report on Indian early stage VCs. It points out that the VC activity in India is increasing and soon, there will be as many as 44 early stage VC firms operating in India, with around $4.4b to invest! While my own estimates are on a lower side, whats undeniable is that more money than ever before will be available to early stage companies. I guess this is good news for entrepreneurs.
The report also raises some concerns, notably amongst them:
1. Lack of sales, marketing and business development skills amongst startup teams
2. Narrow investment theses of the VCs targeting Indian market
The real metric of success is how many of these VCs make money in the Indian market, so hold on to the toasts just a wee bit longer…
- Promoters or Entrepreneurs – A choice for Private Equity players - August 3, 2019
- Startup Marathon Mindset - March 25, 2019
- What’s your Customer Culture? - March 4, 2019
Point no 1 seems to be practically true.
Regarding point no 2
How narrowly are VCs looking for funding startups in India.
There is also one more question. What is the stage at which VCs really fund startups in India?
Stage 1 : I dont see many companies are funded by VCs(since MBAs sitting in VC firm have their own cals and for diversification of millions of fund)
Stage 2: Yes there is funding happening at this level.
Considering typical indian startup it required less seed funding I dont think it requires millions of fund(just to sit having coffee and let fund be burn out).
having too much money can also be a problem.
-Best