Happy Financial Year 2012 -13 to all our readers!!
2011 -2012 has been an eventful financial year, perhaps a record year in terms of overall volume of financing for Venture Capital in India. One element that has continued to keep the confidence going around is increasing quality and quantity of startup entrepreneurs.
We saw a stepped up inflow of funds in Traditional growth equity firms which provided a later stage support to venture backed companies, which augers well for entrepreneurs and the venture industry. Valuations, especially in ecommerce were beginning to look heady, in the middle of the year.It seems like venture capital is getting its roots entrenched , though predicting an year is tough– we hope for a great year in 2012 -13.
In 2011-12, Public markets were choppy throughout the year in India, and globally in the latter half. The exit front in 2011 -12 was actually bit disappointing as dozen plus venture backed companies (largely Internet related), which could be half a billion or more in value, primary exit theme for most of those was IPOs (initial public offering).
With trends over the last six years been:
· 2006 - Mobile Value Added Services;
· 2007 - Education, Real Estate;
· 2008 - Healthcare, Retail;
· 2009 – Microfinance;
· 2010 - Rural, Agriculture;
· 2011 – Ecommerce and so on.
Not many themes have continued the momentum – I do hope ecommerce does. And for 2012, maybe we will be back to mobile VAS (times are changing there), or Education.
The Outlook of 2012-13 looks to be driven more by the health of the markets, rather than by the availability of a good pipeline. Investors may start thinking about diversifying their exit options – both in Internet companies where traditional thought in India has been around IPOs (for lack of an M&A market), but also in terms of looking at investment areas where the dependency on IPOs is less (good old outsourcing!).
Wish you all the best for FY 2012 -13!!!
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