Venture Capital investments dip 25% in Apr-June

New Delhi: Venture Capital investments slid to 78 deals worth USD 275 million during April-June this year, the lowest in any quarter for such investments in the last three years, says a report.

According to data from Venture Intelligence, investment activity in the second quarter of 2017 was 25 per cent lower compared to the same period in 2016 (which witnessed 104 investments worth USD 309 million).

The activity level was seven per cent lower compared to the immediate previous quarter (January-March) which witnessed 84 deals worth USD 349 million.

"While challenges in Consumer Internet & Mobile sector had become quite apparent last year, they are beginning to reflect quite starkly in terms of VC investment figures during 2017," Venture Intelligence Founder & CEO Arun Natarajan said.

The largest VC investment during June quarter was Sequoia Capital's USD 20 million commitment to shared office space provider Awfis.

IT & ITeS companies attracted 54 investments worth USD 180 million (69 per cent of the activity pie) - down 33 per cent compared to April-June of 2016.

Financial Services firms led by OneAssist (USD 18 million) and Ummeed Housing Finance (USD 5.5 million)- attracted four investments worth USD 25 million.

Seed rounds witnessed a steep 53 per cent fall in the second quarter of 2017 to 22 transactions (compared to the 47 deals in April-June 2016).

The Series A round (or First Round of institutional investments) was the only category to witness a rise, climbing 15 percent in the second quarter to 39 transactions, the Venture Intelligence analysis showed.

Bangalore-based startups continued to top the funding charts attracting 26 investments during the quarter despite a down tick from 32 investments in the same period in 2016.