Investment in entrepreneurial ventures in India has grown almost five times in the first nine months of 2007, according to a report by Dow Jones Ventureone and Ernst & Young.
Venture capitalists invested more than $777 million (Rs 3,108 crore) across 57 deals in 2007 till September, against a measly $158 million (Rs 632 crore) in the same period last year. This year’s investments are more than twice the $320 million venture capitalists invested in India in 2005.
According to the report, the investment appetite for information technology companies has gone down. Though the majority of this year’s deals were struck in infotech companies (54 per cent), consumer and retail businesses bit off a big slice at $376 million (Rs 1,504 crore). The median amount invested in this sector reached $12 million (Rs 48 crore), double the median amount in infotech.
“In the early days, infotech used to invite close to 90 per cent of total venture capital investments. But the good news is that opportunities exist outside the technology sector," said Pravin Gandhi, president of The Indus Entrepreneurs, an organisation that focuses on development of entrepreneurship.