As numerous young technology ventures in India get ready for their next level of growth, venture capital funds that invested millions in them are cheering the prospect of earning significant returns. Beginning 2014, some of the top funds in the country are gearing to exit a number of emerging companies— some valued over a billion dollars—making them attractive to retail investors as well as global corporations. In the next two years, the fund which manages a total corpus of $1.4 billion ( Rs 8,729 crore) in India will be eyeing multiple exits, with companies such as data analytics provider Mu Sigma, restaurant listing service Zomato and security software maker Druva topping the list. Till December 2013, investors had poured in $608 million ( Rs 3,791 crore), spread across 162 transactions, into India’s early-stage technology ventures, according to data collated by Ernst & Young. Over the past three years, total investments in India’s startup and early-stage ventures are at almost $2.7 billion ( Rs 16,834 crore), a figure that highlights the increasing need to make profitable exits. Experts contrast the buoyancy in venture investing with the disarray in private-equity cap. Private equity firms invested $7.5 billion ( Rs 46,762 crore) in 2013, their lowest in four years, according to research firm Venture Intelligence. In contrast, venture funds that back innovation in sectors such as consumer internet, technology products, healthcare and education are putting their money to much better use

(Economic Times)