VC funding up 49% in '04: report

A Nasscom survey on the Indian venture capital and private equity sector has estimated the total quantum of funds invested in India in calendar year 2004 at $1.3 billion "" a 49 per cent growth over the disbursements of $865 million in 2003.

The survey reveals that during 2004, about 46 investments were made at $1.3 billion. However, over 90 per cent of the investment was in existing firms and in most cases profitable companies.

Of the total investment, 43 per cent was in management buyouts (including the $500 million sale of GE's stake in GECIS), 27 per cent of the funding was for expansion of existing, profitable companies, and 28 per cent were private investments in deals where venture investors buy stakes in listed companies.