VC deals steady in India, drop in China for Q1
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According to a report from VentureWire, venture investments in two of the biggest emerging economies, China and India, have maintained a healthy pace. Deals in India held steady but dropped in China compared to a year ago.
Venture capital firms invested $98.9 million in 16 Indian companies in the first quarter. By sector, seven companies in the popular consumer/business services category raised $67 million. Six information technology companies, led by three in the software category, raised $18.8 million. And two health care companies picked up a total of $10.6 million.
Firms continued to place larger investments in China in the first quarter while still remaining highly selective. The amount of money moving into mainland China companies reached $719 million in the first quarter, 46% higher than the $492 million raised in the year-earlier period. The number of deals fell to 39 in the first quarter, from 50 in the year-ago period.
Trends
- IT deals have dropped with investors also showing some early interest in health care companies.
- Investors moved aggressively into areas such as local media, advertising and other business services.
- The majority of funding deals in the first quarter involved companies that are already shipping a product.
- Deals are getting larger as firms deploy money in more mature, profitable companies.
