Tamil Nadu gets highest angel investments in 2022

Private Equity and Venture Capital (PE-VC) firms invested $2,614 million across 65 deals in Tamil Nadu-based companies in 2022.

Of this 45 firms are headquartered in She state while the remaining 20 now have their base overseas but were headquartered here at some point and also have a substantial part of their business in Tamil Nadu.

According to data provided by Venture Intelligence, a research service focussed on private company financials, transactions and valuations, in 2021, PE-VC firms invested $2,040 million across 66 firms. During 2022, angel investments in Tamil Nadu was also high. Data shows that 54 firms got angel funding when compared to 43 in 2021 and 25 in 2020. In 2022, Tamil Nadu scored well when compared to national average.

National data shows that PE-VC firms investments in India fell by 29% in 2022 compared to the record highs of 2021. PE-VC firms invested $46 Billion (across 1,261 deals) in Indian companies in 2022, compared to $65 Billion (across 1,362 deals) in the previous year.

India minted a total of 21 “Unicorn” companies (VC-funded startups valued at $1 Billion or more) in 2022, 18 of them during the first six months of 2022 and less than half the 44 Unicorns minted in 2021. In fact, the final quarter of 2022 did not see any new unicorns being created.

SaaS companies accounted for 29% of all the new unicorns in 2022, followed by Fintech companies with 19%. Overall, Unicorn Startups in India attracted $9.8 Billion worth of investments in 2022, down by 61% compared to the previous year (which saw $25 Billion invested in Unicorn Startups).