Venture Capital Funds Are Returning Capital To Their Investors
Is it a lack of good buying opportunities? Not enough businesses of the right type coming to market?
LiveMint says that the pace of funding is slowing down in an environment of sobering start-up valuations.
This is a story about the VC industry in India, but could be just as applicable elsewhere.
The past nine months have been the toughest that the current generation of early-stage investors in this market has faced since it started investing here a little over 10 years ago.
A whole bunch of portfolio companies that looked like sure winners just over a year ago, now stand on shaky ground.
Several others have shuttered operations, leaving behind bruising investment write-offs. Valuations have sobered from their fairy tale levels last year. Growth capital, particularly for mature consumer Internet start-ups—the flag-bearers of the prevailing start-up wave—has dried up with the flight of hedge funds and assorted strategic investors. And unicorns—technology start-ups privately valued at $1 billion or more—are no longer openly coveted trophies in investor portfolios. Read the article