The SGB Sector in 2017

Investing: India

Over half of vehicles launched in the past five years in India focus on the ICT sector

Number of Investment Vehicles launched

With ticket sizes rising in 2017, early-stage deals declined in India

  • Deals
  • Average Deal Size

The average deal size is well over US $2 million every year, indicating that Indian SGBs may not be seeing proportional growth. In 2017, 10 companies cornered almost 70 percent of all funding, and only US $4.2 billion has been invested in companies or start-ups that are not Top 10 fundraisers. Only a fraction of this amount has gone to early-stage companies, with fewer of these types of deals happening this year compared to the past two [3].

In 2017, 485 Series A and earlier deals took place with an average deal-size of US $1.1 million. This represents a 39 percent decrease in deals from 2016, when there were 795 early-stage deals and the average deal size was US $800,000. In 2015, 716 of these deals had an average deal size of US $1.9 million [3].

A recent McKinsey study found that the growing ticket size of impact investments, for which the average has increased in every year since 2013, is partly due to demonstrated profitable exits in the social sector providing more liquidity to enterprises and improving their ability to raise capital. [25]

According to Trak.in, the number of start-up SGB deals involving Indian companies declined by 44 percent from over 400 deals in 2016 to 225 in 2017. As a proportion of total start-up deals in India, SGBs made up 33 percent of deals in 2015, 40 percent in 2014, and dropped back to 33 percent in 2017 [Trak.in].

Only 30 deals involved companies with only women founders, and 95 deals involved companies with at least one woman co-founder. This data on female leadership represents an unimpressive 15 percent of all deals in India [3].