During the second half (H2) of FY 2015-16, the investment pace for India-dedicated funds and hedge funds was lower compared to the first half (H1) of the same financial year. But according to a report by Venture Intelligence, a research firm, family offices recorded more investments in H2 than in H1 of FY 2015-16.
Family office investments increased by 38%. Some of the top names in family office investments included Ronnie Screwvala, Ratan Tata and several co-founders of Infosys.
The data shows that the family office of Ratan Tata invested in 12 companies in H2 of FY 2015-16. During H1, it had invested in only seven companies.
Co-founders of Infosys also made several investments. Catamaran Ventures, a private investment entity of N R Narayana, made three investments each in H2 and H1. Nandan Nilekani made five investments in H2, but only two in H1. S Gopalakrishnan made three investments in H2 and one in H1.
Unilazer, which is sponsored by Screwvala, made two investments in H1 and six in H2.
India-dedicated funds were one of the traditional venture capital (VC) funds that recorded declined investments in H2 compared to H1. Some of these included Sequoia Capital India (which went from 31 deals to 16) and Accel India (which dropped from 27 to 17). Total investments by India-dedicated funds declined by 36%, compared to 22% of foreign venture capitalists (VCs).
During H1 of FY 2015-16 (April-September 2015), investments from international investors, including Russian and European billionaires as well as hedge funds, into Indian startups were on the rise. But this investment activity generally slowed down during the second half. The decline was as high as 67%.
Investments by corporate VCs and strategic investors dropped by about 46%. In particular, corporate VCs investments were down by 44%.
Investment activities by super angels and angel networks were almost at the same pace with a slight decline of 2%.