[Opinion] How JPow's misadventure affects me and you...
Seeing the S&P500 witness a spectacular "short" rally before popping, and then it becoming decidedly clear that even if the rate hikes were unlikely it was still going to be a long time before rates come down. Becoming much more clearer that the impact on various asset classes and securities is going to be muted for the time to be. Unless interest rates come down, I can't possibly imagine that the VC funding will pick up again, their LPs can't put in more money unless interest rates come down. Cheap capital fuels the VC ecosystem, if capital isn't cheap then allocation in VC Funds goes down to adjust to a newly adjusted risk appetite of investors.
Interestingly, I was having a conversation with a friend in the tech-investing space and we observed there are lots of activities happening in the Indian VC space. From the ex-BharatPe CEO launching a new fund to many others moving to VC/PE space. As per some reports, investments in India doubled in last quarter outperforming other Asian markets
https://m.economictimes.com/tech/funding/vc-investment-in-india-doubles-to-3-2-billion-across-354-deals-in-march-quarter-report/amp_articleshow/109509920.cms
Another report from Bain highlighted more investment activities coming in H2’24 as due diligence in progress -
https://www.thehindubusinessline.com/economy/indias-venture-capital-landscape-set-for-surge-post-elections-bain-company-report/article67949466.ece/amp/
Overall, to me, it looks like the underperformance of other markets is turning a boom for ours.
@ElonMast Yes, underperformance + rationalisation of valuations has led to significant doubling down on India.
The worry is about fresh inflows to the Funds themselves. Not the deployment. They have enough dry powder, and they have to deploy it to make that money.
Wonder when will we have our own funds. Like LPs from our funds like LIC, EPFO etc.
deadpm
Stealth
5 months ago
@hydrogen can you elaborate
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