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Smaller, fewer venture capital deals in India cause drop in Q1 investment levels23/05/2008. Source: AltAssets. 
 Venture capital investment in India fell to $99m across 16 deals in the first quarter of this year, according to the Quarterly India Venture Capital Report released by Dow Jones VentureSource. The amount invested represents a 27 per cent drop from the fourth quarter that saw a record $135m put into 17 deals.
In contrast, the size of venture capital deals has grown in the US, Europe and China.
The median size of a venture investment in an India-based company in the first quarter of this year was $4.1m, down from $8.3m in 2007 and well below the medians seen in the US ($7.1m), Europe ($4.5m) and China ($10m) in the first quarter.
'Venture investment in India did see a drop in the first quarter from the fourth quarter but it is not really accurate to compare this year's first quarter to the big spike we saw in the first quarter of 2007 when $513m was put into 37 deals,' said Jessica Canning, director of global research for Dow Jones VentureSource. 'Our data shows that deal activity in India remains steady and the drop in investment during the first quarter is simply a result of smaller deals, not an overall pull-back.'
Nearly 67 per cent of all venture investment in India, or some $67m - went to seven consumer/business services companies. The largest deal in this area was the $26m third round for ClearTrip Travel Services, based in Mumbai.
Of the 16 deals completed in the first quarter, ten were for companies already shipping products and generating revenues while another three were for companies with established profitability. Together, they accounted for 90 per cent of India's quarterly investment.
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