Private equity and venture capital have played the role of a lucrative springboard in providing growth capital for Indian businesses. In just the last few years, these two alternative investment channels have moved from a ten-billion-dollar opportunity to almost 50 billion dollars in 2019 and 2020.
What’s the difference between private equity and venture capital deals?
Private equity and venture capital investments mark a big trend within the finance sector, especially in the United States. Common to both forms of investment is that an investor obtains equity in a private (and therefore not publicly listed) entity. The decision to make an investment is generally made under purely financial considerations aiming to a beneficial exit. In private equity, mostly large institutional investors buy at least the majority of shares of an already matured company and try to make it more profitable. In contrast, venture capital investors finance start-ups and small businesses from the technology sector. As this is more risky, the percentage of acquired shares is much lower and many investors spread their investments into different start-ups. The attraction of venture capital is particularly important for those start-ups that do not have access to debt instruments.
This text provides general information. Statista assumes no
liability for the information given being complete or correct.
Due to varying update cycles, statistics can display more up-to-date
data than referenced in the text.
In the following 5 chapters, you will quickly find the 23 most important statistics relating to "Private equity and venture capital in India".