<p>Venture capital (VC) investments in Indian startups plunged over 38 per cent in 2022 as economic uncertainty and market volatility affected fundraising and investment activities, GlobalData said on Tuesday.</p>.<p>In a statement, GlobalData said an analysis of its financial deals database reveals that "a total of 1,726 VC funding deals worth $20.9 billion were announced in India in 2022 compared to 1,715 deals worth $33.8 billion in 2021."</p>.<p>"The ongoing economic uncertainty and market volatility continue to affect the fundraising and investment activities in India and subsequently VC investment in the country startups suffered a massive year-on-year 38.2 per cent decline in value terms during 2022," the data and analytics company said.</p>.<p>Aurojyoti Bose, lead analyst at GlobalData, said India is a key Asia-Pacific market and stands just next to China in terms of VC funding deals by volume and value.</p>.<p>It is also among the top four markets (the US, the UK, China and India) globally.</p>.<p>India accounted for 5.1 per cent and 6.3 per cent share of global VC funding value and volume, respectively, in 2022.</p>.<p>While the US, the UK and China registered decline in VC funding deal volume in 2022 compared to the previous year, India stood out as a notable exception and registered 0.6 per cent growth.</p>.<p>"Although India's VC funding deal volume has slightly increased year-on-year, the significant drop in VC funding value seems to be a fallout of growing investor cautiousness over startup valuations. Moreover, volatile market conditions and recession fears seem to have forced many investors to preserve capital. The restrictions on travel and in-person meetings also made it more difficult for VC firms to conduct due diligence on potential investments," Bose said.</p>.<p>The average size of VC funding deals, which stood at $19.7 million in 2021 fell to $12.1 million in 2022. The number of VC deals valued more than or equal to $100 million announced in India stood at 42 in 2022 as compared to 86 during the previous year.</p>.<p>"The decrease in venture capital investment can also be attributed to the lack of companies that can generate significant returns for investors. This is a common challenge for emerging economies, and India is no exception," Bose added.</p>.<p>GlobalData said historic data may change in case some deals get added to previous months because of a delay in the disclosure of information in the public domain.</p>
<p>Venture capital (VC) investments in Indian startups plunged over 38 per cent in 2022 as economic uncertainty and market volatility affected fundraising and investment activities, GlobalData said on Tuesday.</p>.<p>In a statement, GlobalData said an analysis of its financial deals database reveals that "a total of 1,726 VC funding deals worth $20.9 billion were announced in India in 2022 compared to 1,715 deals worth $33.8 billion in 2021."</p>.<p>"The ongoing economic uncertainty and market volatility continue to affect the fundraising and investment activities in India and subsequently VC investment in the country startups suffered a massive year-on-year 38.2 per cent decline in value terms during 2022," the data and analytics company said.</p>.<p>Aurojyoti Bose, lead analyst at GlobalData, said India is a key Asia-Pacific market and stands just next to China in terms of VC funding deals by volume and value.</p>.<p>It is also among the top four markets (the US, the UK, China and India) globally.</p>.<p>India accounted for 5.1 per cent and 6.3 per cent share of global VC funding value and volume, respectively, in 2022.</p>.<p>While the US, the UK and China registered decline in VC funding deal volume in 2022 compared to the previous year, India stood out as a notable exception and registered 0.6 per cent growth.</p>.<p>"Although India's VC funding deal volume has slightly increased year-on-year, the significant drop in VC funding value seems to be a fallout of growing investor cautiousness over startup valuations. Moreover, volatile market conditions and recession fears seem to have forced many investors to preserve capital. The restrictions on travel and in-person meetings also made it more difficult for VC firms to conduct due diligence on potential investments," Bose said.</p>.<p>The average size of VC funding deals, which stood at $19.7 million in 2021 fell to $12.1 million in 2022. The number of VC deals valued more than or equal to $100 million announced in India stood at 42 in 2022 as compared to 86 during the previous year.</p>.<p>"The decrease in venture capital investment can also be attributed to the lack of companies that can generate significant returns for investors. This is a common challenge for emerging economies, and India is no exception," Bose added.</p>.<p>GlobalData said historic data may change in case some deals get added to previous months because of a delay in the disclosure of information in the public domain.</p>