WINDFALL FOR VC INVESTORS

The last year was an encouraging one for venture capitalists. Many exited their investments at handsome multiples by selling their shares to larger funds. Japanese SoftBank Corp and Chinese Alibaba emerged as the clear saviours for early investors in start-ups. Going by the data from Venture Intelligence, 2017 saw

63 VC exits worth $2.23 billion through the M&A route – the highest in three years. In 2016, there were

67 deals, but these were valued at $1.17 billion. SoftBank’s purchase alone totals $1.2 billion. It acquired Tiger Global’s shares, or part of it, in Flipkart as well as SAIF Partners’ stake in

One97 Communications. Alibaba also consolidated its position in One97. While VC investing is expected to gain momentum in 2018, the exit front will be worth watching. Expect further consolidation in India’s e-commerce space as the market is largely polarised between Amazon and Flipkart.