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March 31, 2017

Media Mention: Five Reasons Why Investors Are Moving Capital Into Commercial Real Estate in Emerging Markets - Frontera News



Venture Intelligence is India's longest serving provider of data and analysis on Private Company Financials, Transactions (private equity, venture capital and M&A) & their Valuations in India.

March 27, 2017

PE investors to reap 1.2x via CL Educate's IPO


Venture Intelligence is India's longest serving provider of data and analysis on Private Company Financials, Transactions (private equity, venture capital and M&A) & their Valuations in India.

March 26, 2017

“Private Equity-backed cos. outperform their peers”: Study

PE/VC-backed companies fare better in terms of growth in sales & asset growth, a study by Venture Intelligence – under the guidance of Prof. Thillai Rajan of IIT-Madras - shows.

According to a new study by Venture Intelligence, a leading research firm focussed on Private Company Financials, Transactions and their Valuations in India, Private Equity (including Venture Capital) backed companies are growing significantly faster as compared to companies that did not have any PE-VC funding and also publicly listed companies that comprise market indices like Sensex, Nifty and CNX Midcap.

The Private Equity Impact study, first conducted in 2007, measures the impact of PE and VC funds on the Indian economy using quantitative and qualitative methods. This year, with advice and guidance from Prof. Thillai Rajan A of Department of Management Studies at IIT-Madras, the study revisited the theme of comparing PE- and VC-backed companies vis-à-vis those that did not have any PE/VC funding and other indices using quantitative and qualitative parameters.

Prof. Thillai Rajan, IIT-Madras who guided The Study

The PE Impact 2017 report was released at Venture Intelligence APEX, the annual conclave of the Indian Private Equity & Venture Capital industry, at Bangalore by Srivatsa Krishna, IAS who has earlier worked with the World Bank’s private sector financing initiative and has researched the PE industry in detail. The first copy of the report was received by Dr. G.S.K Velu, Founder of Trivitron Group, who has successfully raised and leveraged PE capital across several healthcare ventures. 

Dr. G.S.K Velu, Founder of Trivitron Group & Srivatsa Krishna, IAS 

Other Highlights of the Report:

In the six years between 2011 and 2016, PE-VC firms invested over $72 billion in Indian companies – over 6.5 times what Corporate India raised via Initial Public Offerings (IPOs) during the same period
PE investment is largely associated with smaller companies. The average size of PE funded firms in terms of revenues and assets are about one-sixth of all listed firms
Revenue growth of PE-VC backed companies are more than twice that of other benchmarks
PE-VC investment is associated not just with top line growth but also with growth in asset creation
PE-VC funded companies exhibit a more efficient working capital management as compared to listed peers
The profit growth of PE-VC funded companies is the lowest among the benchmarks indicating a predominant focus of such companies on long term growth, sacrificing bottomline focus in the short term
Lower asset returns, cash returns on capital invested and asset turnover in PE-VC funded companies indicate a focus on long term growth
PE-VC investments helps to increase the equity base to attract debt capital. PE-VC investors provide a degree of comfort to lenders as indicated in debt levels and costs 
The primary markets are characterized by significant volatility. PE-VC investors do continue to invest even in times even when there is a squeeze in conventional markets, thereby helping the companies to tide over the industry down cycles. As promoters of small-to-mid sized companies typically face limitations in terms of the quantum of equity contribution they can make, PE-VC investors step in to provide the long term funding require to catalyze growth.   
The report features case studies of four PE/VC-backed companies – Quess Corp, redBus, Vectus and Equitas Holdings. The entrepreneurs featured in the Case Studies attest the value added by PE-VC investors – beyond merely providing capital.
Founders of start-ups are often not well versed with “once in a lifetime of a company” processes such as IPO, M&A and so on. Since many PE-VC investors have prior experience in the financial services industry as well as in addition to working with other investee companies in their portfolio, they are able to help promoters steer through the complexities.  

“The PE Impact Study demonstrates how PE and VC firms adopt a long term perspective in their investment decisions. The presence of a PE / VC investor provides a kind of certification which, while broadening the equity base, also helps the investee companies access other sources of funding including debt capital. PE/VC investors also forge active partnerships with their investee companies to improve growth and business strategy, besides opening up new opportunities,” said Prof. Thillai Rajan. 

“The common thread that emerges from The Study is that PE-VC investment, when chosen and leveraged well, can help companies scale up rapidly and accelerate growth in several ways that add significant value to the Indian Economy,” said Arun Natarajan, CEO of Venture Intelligence.

Pointing out that the findings of this report differed from those released by various leading consulting firms, Srivatsa Krishna cautioned the Indian Private Equity industry on the various risks it was facing as also the risks it was opening itself too, some by its own sins of omission and commission. 

The full report can be downloaded from www.ventureintelligence.com/peimpact.htm

About Venture Intelligence

Venture Intelligence, a division of Chennai, India-based TSJ Media Pvt. Ltd., is India’s longest serving provider of data and analysis on Private Company Financials, Transactions and their Valuations in India. For more information, please visit http://www.ventureintelligence.com

About Prof. Thillai Rajan 

Prof. Thillai Rajan A is currently a Professor in the Department of Management Studies at the Indian Institute of Technology Madras. He is also an international research affiliate at the Coller Institute of Venture at Tel Aviv University, Israel, and an Associate at the Mossavar-Rahmani Centre for Business and Government, Harvard Kennedy School, Harvard University. His teaching and research areas include Private Equity and Venture Capital, Corporate Finance, Project and Infrastructure Finance, and Public Private Partnerships. A more detailed profile can be viewed at https://home.iitm.ac.in/thillair/



March 17, 2017

Did "Tranching" of Investments by VCs lead to the Undoing of Stayzilla?


In a LinkedIN post titled "What We MUST learn from the #Stayzilla Incident. But are we?", Vijay Anand, Founder of Chennai-based accelerator The Startup Centre, suspected that VC investors in the company might not have transferred the entire funding amount as available in public sources like TechCrunch, etc. 


Venture Intelligence Research Head Vinoth jumped into action to pull out regulatory filings based information from the Venture Intelligence PE/VC Deals Database. And advised Vijay Anand that the investors had indeed paid up the committed capital of $13.5 M (INR 87.77 Cr to be specific) in full.


Here's an extract from Stayzilla's FY16 annual report acknowledging the receipt of the investor's committed capital.

While tranching of funding has caused problems at other startups, it does not seem to have been the villain in the case of Stayzilla.

In all cases though, think of Venture Intelligence whenever you need validated information on Private Company Financials, Transactions & their Valuations - based on actual filings. This kind of validated stuff is simply not available in any other database. Free or Paid. Foreign or Indian.


Venture Intelligence is India's longest serving provider of data and analysis on Private Company Financials, Transactions (private equity, venture capital and M&A) & their Valuations in India.

March 16, 2017

Media Mention: TA Associates invests in pharma products supplier Ideal Cures

Mint's coverage of the deal quotes Venture Intelligence data.

According to Venture Intelligence, this will be TA Associates’ third investment in the healthcare space in the last three years. It has previously backed Dr Lal Pathlabs Ltd, which went public in December 2015. It invested about $26 million in drug ingredients maker Shilpa Medicare in January this year.

Venture Intelligence is India's longest serving provider of data and analysis on Private Company Financials, Transactions (private equity, venture capital and M&A) & their Valuations in India.

March 12, 2017

Media Mentions: VC and angel investment on slow track in February - Times of India & Business Standard


From the Times of India report:
Indian startups may need to brace up for a fund squeeze with VC and angel investments touching new lows in February. According to data from Venture Intelligence, VC investments touched a 5 month low while angel investments hit a 14 month low in February.
With 32 VC investments worth $241 million, activity levels in February 2016 were 20% lower than February 2015 and 36% lower than the average activity witnessed in the Oct-Dec quarter. Data from the research firm shows that except for a slight uptick in series B funding, all other categories saw a dip or remained flat.
From the Business Standard report:
The angel, seed, Series A, Series C and Series D investments were down compared to the previous months, while there was a minor increase in terms of number of investments into Series B. Angel investment has seen a 14-month low and declined to 21 deals during February 2017, compared to 49 deals during the same month of last year. 
Venture Intelligence is India's longest serving provider of data and analysis on Private Company Financials, Transactions (private equity, venture capital and M&A) & their Valuations in India.

March 06, 2017

Why are VCs and Angels slowing down?

On the back of chilling news of mass layoffs at home grown E-Commerce Unicorn Snapdeal and a “reboot” at homestays aggregator Stayzilla, Venture Capital investment activity hit a five month low in February 2017, down for a third month in a row.
Venture Intelligence tracked 32 VC investments* worth $241 million in February. The activity or number of investments were 20% lower compared to the same period last year as well immediate previous month and 36% lower than the average activity levels witnessed in the Oct-Dec quarter. (*Seed to Series D round investments of up to $20-M in companies less than 10 years old. The monthly analysis includes investments of over $20-M as well in tech startups that are less than 10 years old.) Except for a minor uptick in the Series B category, investment volumes were either flat or lower across all other rounds.

The largest VC investment in the period was the $54 million raised by Cartrade.com led by existing investor Temasek – the same company had raised $145 million in January 2016. Furniture e-tailer UrbanLadder.com was another company that raised an “inside round” (i.e., from existing investors) of $15 million, compared to the $50 million it raised previously in April 2015.
Enterprise Software companies – including Cloud1 Enterprises, HyperTrack, Fyle Technologies, Belong and Sigtuple - continued to get the favourable attention of investors in February. Angel investments continued to slide to register a 14 month low at 21 transactions in February 2017.The ET-Now Startup Central show, anchored by Chandra Srikanth, carried a debate on the latest VC numbers compiled by Venture Intelligence featuring IDG Ventures India Co-founder TCM Sundaram and active angel investor Sanjay Mehta.


Venture Intelligence
 is India's longest serving provider of data and analysis on Private Company Financials, Transactions (private equity, venture capital and M&A) & their Valuations in India. Catch more Venture Capital related debates at Venture Intelligence's APEX'17 PE-VC Summit in Bangalore on March 22.