Pe-vc Investments Drop 30% Yoy In 2022 | Chennai News
Chennai: 2022 brought in a 30% decline in Private Equity – Venture Capital (PE-VC) investments compared to record highs that the private markets touched in 2021. Subsequently, the number of private firms that achieved the ‘unicorn’ status also halved in the year.
PE-VC firms invested $46 billion (across 1,261 deals) in calendar year 2022 compared to $65 billion (across 1,362 deals) in 2021, data from research firm Venture Intelligence shows. 2022 has still seen a rise in investment compared to pre-Covid years, as total PE-VC deal values stood at $40 billion (947 deals) in 2020, and $36.95 (1079 deals) in 2019.
India minted a total of 21 unicorns (private firms valued over $1 billion) in 2022 (18 of them during the first six months of the year) – less than half of the 44 unicorns minted in 2021. In a sign of the funding winter, no new unicorns were created in the last quarter (Oct-Dec) of 2022.
Even as PE investments in infrastructure and healthcare held strong in 2022, a steep fall in late-stage PE and VC deals in technology startups pulled down the overall tally. 2022 witnessed 111 mega deals ($100 million+ rounds) worth $31 billion compared to 152 such investments worth $50.3 Billion in 2021.
Even among the unicorns, there was a shift in sectoral mix as SaaS companies overtook consumer tech, by accounting for 29% of all the new unicorns in 2022, followed by fintech at 19%. Similarly, even in terms of overall investment, IT & ITeS companies accounted for $20.4 billion of the total investment pie in 2022- a steep fall of 51% when compared with 2021.
As per Venture Intelligence’s data, Sequoia Capital India was the most active VC investor in 2022 with 73 investments (including new and follow-on deals), followed by Accel India and Better Capital with 57 investments each. Tiger Global took third place with 50 investments.
PE-VC firms invested $46 billion (across 1,261 deals) in calendar year 2022 compared to $65 billion (across 1,362 deals) in 2021, data from research firm Venture Intelligence shows. 2022 has still seen a rise in investment compared to pre-Covid years, as total PE-VC deal values stood at $40 billion (947 deals) in 2020, and $36.95 (1079 deals) in 2019.
India minted a total of 21 unicorns (private firms valued over $1 billion) in 2022 (18 of them during the first six months of the year) – less than half of the 44 unicorns minted in 2021. In a sign of the funding winter, no new unicorns were created in the last quarter (Oct-Dec) of 2022.
Even as PE investments in infrastructure and healthcare held strong in 2022, a steep fall in late-stage PE and VC deals in technology startups pulled down the overall tally. 2022 witnessed 111 mega deals ($100 million+ rounds) worth $31 billion compared to 152 such investments worth $50.3 Billion in 2021.
Even among the unicorns, there was a shift in sectoral mix as SaaS companies overtook consumer tech, by accounting for 29% of all the new unicorns in 2022, followed by fintech at 19%. Similarly, even in terms of overall investment, IT & ITeS companies accounted for $20.4 billion of the total investment pie in 2022- a steep fall of 51% when compared with 2021.
As per Venture Intelligence’s data, Sequoia Capital India was the most active VC investor in 2022 with 73 investments (including new and follow-on deals), followed by Accel India and Better Capital with 57 investments each. Tiger Global took third place with 50 investments.
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