27% dip in PE/VC investment: Study

In April 2022, as startup funding declined, there was a 27% drop in investments by private equity and venture capital funds at US$ 5.5 billion. However, as per a recent report by industry grouping IVCA and EY, a consultancy, the overall investment was 11% higher than the US$ 5 billion noted prior to March 2022. During April, the investment by the venture capital funds reduced to US$ 1.6 billion, spread across 82 deals, which resulted in dropdown of the overall number.

“Downside risks that can temper growth expectations and PE/ VC investment activity include rising inflation, oil prices, dollar appreciation vs Indian Rupee and rising Indian interest rates,” The consultancy’s partner Vivek Soni stated. Elevation Capital managed to garner US$ 670 million. In a funding round Verse innovations raised US$ 805 million which was the largest deal in the month and the entertainment sector was the second largest, report said.