A naukri.com initiative
Medium
1w
96
VC Consolidation in India: A Landscape Redefined by Scale and Strategy
- Established VCs in India are increasing fund sizes to deploy capital across various stages, from early to late-stage investments.
- This shift allows for substantial allocations to growth-stage startups that require significant capital to scale.
- First-time funds rely on carried interest for profits, leading to a competitive, hands-on approach compared to established funds.
- Challenges for first-time funds include fundraising hurdles due to perceived higher risk from lack of track record.
- Divergence in performance exists between top-performing and lower-tier funds in India, impacting access to resources and deal flow.
- Large VCs' bidirectional strategies involve both early and late-stage investments, challenging smaller funds in the market.
- Dominance of large funds raises concerns about reduced diversity in funding landscape, potentially stifling innovation in certain sectors or regions.
- Balanced ecosystem requires collaboration between large and small funds, supported by LP programs and regulatory initiatives.
- The Indian VC industry faces a pivotal moment with power consolidation among established players and emergence of performance-driven first-time funds.
- Adapting to these shifts will be crucial for sustaining a dynamic and innovative VC landscape in India.
Read Full Article
5 Likes
For uninterrupted reading, download the app