Mumbai: Venture capital (VC) investments surged during the first half of 2014, reflecting optimism about India's entrepreneurial ecosystem and the potential of the country's market.
According to data from audit and advisory firm E&Y, investments in early-stage companies and startups rose nearly 40% to 121 deals with the transaction value jumping 66% to $605 million (Rs 3,630 crore), compared with the same period in 2013.
Venture capital investments are at their highest level for the first half since 2010, when $663 million (Rs 3,978 crore) was invested across 51 deals.
"The 15 years I have been involved in India, this is the most healthy venture ecosystem I have ever seen," said Avnish Bajaj of Matrix Partners India, who founded e-commerce venture Baazee in 2000 before becoming a VC in 2006.
He said that factors like a deep consumer market, hungry entrepreneurs and different business models are providing an interesting market for risk capital firms. VC investments in 2014 so far are close to overtaking the entire amount deployed in 2013, when $630 million (Rs 3,780 crore) was ploughed in across 179 deals.
VC investments had reached a high in 2011 when $1.3 billion (Rs 7,800 crore) was invested in 159 deals
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