Thread by @sajithpai

Bain India released its 2019 India VC Report, partnering w @indianvca.

The report authored by @asheth99 - the most powerful person in Indian VC who is not a VC or founder:-) - is worth a read.

Here is what I found interesting from the report.

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Link - bain.com/insights/india…

30%+ increase in VC investments in 2019 volume + value over last yr.

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Avg VC deal size - across all stages is $13m ($10b / 750 deals). It is is been rising steadily up since 2016, largely on the back of rich late stage valuation.

Look at Series C CAGR vs D+! India is becoming a unicorn-led market.

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Stagewise deal size. Seed and D+ round sizes have seen a sharp rise. Look at Series A-C, No real bump here.

Reasons?
Seed - Entry of later stage investors, rise of 2nd time founders
D+ - too much late growth capital chasing few quality deals

/4

There is a slot for an aggressive Series C growth fund (biggest gap in Indian market).

Not surprising that Multiples led by Renuka Ramnath has done well - they are the closest to this w plays in Delhivery, IEX & Dream11 (Believe they made a 10-bagger on Dream11)

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This is a great slide (2010-19 data).

Only 8% of startups get seed funding. Of these, about 1/4th get Series A, & then at B, C, D+ abt 40% of the previously stage funded cos get invested in. So out of 79k startups, just over a 100 go beyond Series C!

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Wow! But again not really surprising. Venture is a hits business. Our carry really comes those 300 Series C and beyond plays.

Now let us look at Exits.

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Avg exit value of $39 fm 132 exits in ’19 = ~$5b.

However contrasted w $4.6b invested in 2014 (if holding period of ~5 yrs) clearly show value / exits take longer to realise in India.

Also look at low share of IPO. This is why @bkartred has been screaming for IPOs.

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Lots more granular data as well on sectors. Go ahead and download the report.

Link - bain.com/insights/india…

Thanks @sheth99 & team for the report!

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