Market Insights Financial Capital Raising Traditional Capital Raising

Venture Capital - India

India

The country in India is expected to see the Total Capital Raised in the Venture Capital market market reach €3.2bn by 2024.
In the same year, Later Stage is set to dominate the market with a projected market volume of €1.8bn.
When compared globally, the United States will lead in Capital Raised, generating €241,800.0m in 2024.
India's Venture Capital market is booming, with a surge in investments in tech startups driving innovation and economic growth.

Key regions: China, Australia, India, Europe, Israel

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Analyst Opinion

The Venture Capital market in India has been experiencing significant growth and development in recent years. Customer preferences, trends in the market, local special circumstances, and underlying macroeconomic factors have all contributed to this positive trajectory.

Customer preferences in the Indian market have played a crucial role in driving the growth of the Venture Capital industry. Indian entrepreneurs are increasingly seeking funding from venture capitalists to fuel their innovative ideas and scale their businesses. This preference for venture capital funding is driven by the desire for rapid growth and the availability of specialized expertise and networks that venture capitalists bring to the table.

Additionally, Indian entrepreneurs are attracted to the flexible terms and conditions offered by venture capitalists, which allow them to retain control over their businesses while still accessing the necessary capital. Trends in the Indian Venture Capital market have also contributed to its growth and development. One notable trend is the increasing focus on sectors such as technology, e-commerce, and healthcare.

These sectors have shown tremendous potential for growth in India, and venture capitalists are keen to invest in companies operating in these spaces. Furthermore, there has been a rise in the number of early-stage investments, indicating a growing appetite for risk among venture capitalists. This trend is driven by the recognition of the potential for high returns in the Indian market and the increasing availability of quality startups.

Local special circumstances in India have created a favorable environment for the growth of the Venture Capital market. The Indian government has implemented various initiatives to promote entrepreneurship and innovation, such as the Startup India program. These initiatives have resulted in a vibrant startup ecosystem, attracting both domestic and international venture capitalists.

Furthermore, the presence of a large and young population with increasing disposable income has created a significant consumer market, making India an attractive destination for venture capital investments. Underlying macroeconomic factors have also contributed to the development of the Venture Capital market in India. The country's strong economic growth, coupled with a stable political environment, has instilled confidence among investors.

Additionally, the increasing digitization of the Indian economy has created new opportunities for startups, further fueling the demand for venture capital funding. Furthermore, India's demographic dividend, with a large proportion of the population under the age of 35, presents a vast market for innovative products and services, attracting venture capitalists looking for high-growth opportunities. In conclusion, the Venture Capital market in India is experiencing significant growth and development due to customer preferences, trends in the market, local special circumstances, and underlying macroeconomic factors.

Indian entrepreneurs' preference for venture capital funding, the focus on key sectors, favorable government initiatives, and the country's strong economic growth all contribute to the positive trajectory of the Indian Venture Capital market. With these factors in place, the future looks promising for the continued growth and success of the Venture Capital industry in India.

Methodology

Data coverage:

Data encompasses B2B and B2C enterprises. Figures are based on the amount of capital raised, the average of deal size and the number of deals.

Modeling approach / Market size:

Market sizes are determined through a combined top-down and bottom-up approach, building on a specific rationale for each market segment. As a basis for evaluating markets, we use data from OECD, annual financial reports of key players, industry reports, third-party reports, publicly available databases, and survey results from primary research (e.g., the Statista Global Consumer Survey). In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, CPI, number of small and medium-sized enterprises (SME), new businesses registered (number) . This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the S-curve function and exponential trend smoothing are well suited for forecasting digital products and services due to the non-linear growth of technology adoption.

Additional notes:

The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic and the Russia-Ukraine war is considered at a country-specific level.