There Will Be A Glut Of VC Money In India: Evalueserve

Here is a report (PDF) on Indian venture capital scene by Evalueserve, an India (Gurgaon)-based research and analytics firm. It says more than 44 firms are likely to raise about $4.4 billion in venture capital money to invest in Indian ventures over the next 4 to 5 years. The article says, “Taking Indian Purchasing Power Parity (PPP) into
consideration, this would be equivalent to $22 billion worth of investment in the US. Since about $1.75 billion (or approximately 40% of $4.4 billion) has been already raised – even if only $2.2 billion is raised by December 2006 – Evalueserve cautions that there will be a glut of VC money for earlystage investments in India. This will be especially true if the VCs continue to invest only in currently favourite sectors such as IT, BPO, software and hardware products, telecom, and consumer Internet.” The report has other interesting analsys and information. Check it out. [Via VentureWoods.org]

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