Venture capital and private equity in India: an analysis of investments and exits

Thillai Rajan Annamalai · Ashish Deshmukh

26 citations0/0 files storedJournal of Indian Business Research

No readable copy stored yet — this record is metadata only.

No open-access location is known for this record yet.

Literature note Cite in a project Citation map

Private Equity and Venture Capital Corporate Finance and Governance FinTech, Crowdfunding, Digital Finance

Abstract

Purpose The venture capital and private equity (VCPE) industry in India has grown significantly in recent years. During five‐year period 2004‐2008, the industry growth rate in India was the fastest globally and it rose to occupy the number three slot worldwide in terms of quantum of investments. However, academic research on the Indian VCPE industry has been limited. This paper seeks to fill the gap in research on the recent trends in the Indian VCPE industry. Design/methodology/approach Studies on the VCPE transactions have traditionally focused on one of the components of the investment lifecycle, i.e. investments, monitoring, or exit. This study is based on analyzing the investment life cycle in its entirety, from the time of investment by the VCPE fund till the time of exit. The analysis was based on a total of 1,912 VCPE transactions involving 1,503 firms during the years 2004‐2008. Findings Most VCPE investments were in late stage financing and took place many years after the incorporation of the investee firm. The industry was also characterized by the short duration of the investments. The type of exit was well predicted by the type of industry, financing stage, region of investment, and type of VCPE fund. Originality/value This paper highlights some of the key areas to ensure sustainable growth of the industry. Early stage funding opportunities should be increased to ensure that there is a strong pipeline of investment opportunities for late stage investors. VCPE investments should be seen as long‐term investments and not as “quick flips”. To achieve this, it is important to have a strong domestic VCPE industry which can stay invested in the portfolio company for a longer term.

Paper brief

Loading…

Cite this work

Citation unavailable for this work.

BibTeX RIS CSL-JSON

No public copy is stored for this record, so only the metadata is cited.

Citations in this library

Citation map →

Stored only when both papers are in the corpus — 26 citations exist upstream.

References

1990The structure and governance of venture-capital organizations 1995Optimal Investment, Monitoring, and the Staging of Venture Capital 1999The venture capital cycle 1996Grandstanding in the venture capital industry 1994Venture capitalists and the decision to go public 1994Robust Financial Contracting and the Role of Venture Capitalists 1999Staged Financing: An Agency Perspective 2002Creating an Environment for Venture Capital in India

Cited by

2021Mapping research in the field of private equity: a bibliometric analysis 2021Exit strategy decision by venture capital firms in India using fuzzy AHP

Explore the map →

Papers that cite the same references — the relational fallback while embeddings are still backfilling.

Imported from OpenAlex (CC0) — nothing here is generated.