China has certainly been the belle of the ball among venture capitalists. Investors have already put nearly $2.6 billion to work in China year-to-date. That’s 50% more than what VCs invested during the first eight months of 2007, according to Thomson Reuters (publisher of PE Week).
However, a spate of recent fund closings suggests venture firms are anxious to up their efforts in the Indian subcontinent. Venture investors are doing their part to spur economic development in India. VCs have invested more than $2.3 billion into the country so far this year.
Among the more noteworthy firms that are active is
Also, early stage investor
“The domestic market is still very much booming,” says Deepak Kamra, general partner of
Canaan has increased its commitments in India and recently hired Executive Director Harish Gandhi to look at deals in New Delhi.
And for each firm that’s reloading, there seems to be another that’s raising its first fund. Growth stage private equity and buyout firm
Still, Kamra doesn’t expect to see too many more firms announcing India operations.
“I don’t see as many new firms there, not as much as I saw in 2007,” Kamra says. “Most of the major firms are there now. Many are doing late stage only, but some are doing early stage too. Anybody who wanted to have a play is pretty much there.” —Alexander Haislip