According to a report by Bain and Co., private equity investment, which is currently the most preferred type of investment by startups, is expected to touch the figures of $22.3 billion by the end of this year, crossing the previous record of $17 billion which was set in 2007.
As per the report, the transactions will be led by an uptick in investment activity in consumer technology, real estate and banking, financial services and insurance (BFSI) sectors.
The deal flow in the first nine months of the year has already exceeded by 58% compared to the investment made during the same period in last year. In 2014, the total deal flow was about $10.6 billion for the nine months, up to September. On an average, about 250 deals took place every quarter in the first nine months of 2015.
About 65% of all deal flow came from consumer technology, real estate and BFSI sectors. The report also suggests that the average deal size also increased to $21 million, a 19% increase over same period in 2014.
The top private equity deals include Flipkart’s $700 million funding round; Snapdeal’s $500 million funding round which was led by Foxconn and Chinese eCommerce giant Alibaba; among others.
The report also states that the exit values have grown at 2% to reach $4.8 billion, driven by public market sales. The key sectors of exit were BFSI, real estate, and telecom.
Earlier, in a report released by IIT Madras, it was revealed that the health-tech startups received maximum early stage funding while the most deals were in internet marketplace and e-commerce segment. It also revealed that the finance sector leads in growth stage or late stage funding.
