In India, too, investments have slowed sharply as VCs get selective about backing startups
$4.9 bln is the total amount raised by VC-backed companies in the Asia region across 357 deals in Q4 2016, according to KPMG Enterprise
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Global venture capital (VC) activity—both in terms of the number of deals and dollars invested—slowed in 2016, according to KPMG Enterprise’s Venture Pulse Q4 2016 report published last month.
Deal volumes plummeted by 24 percent to 13,665 in 2016, from around 18,000 in the previous year. Total VC investments also declined from a high of $141 billion in 2015 to $127 billion last year.
While the US and European markets dried up substantially, Asia’s funding activity remained steady year-on-year, receiving VC funds of just over $39 billion, mostly on the back of mega deals in China.
“2016 brought a dose of reality back to the VC market,” says Brian Hughes, co-leader of venture capital at KPMG, USA.
(This story appears in the 17 February, 2017 issue of Forbes India. To visit our Archives, click here.)