VCs Sit On Record Dry Powder, But Are Not Splurging

With Start-up Valuations Hitting Realistic Levels And With No Fear Of Missing Out, Venture Capitalists Are Sitting On Massive Dry Powder And Are In No Rush To Invest

- Binu Paul

SITTING ON A PILE

1 The current high levels of VC dry powder, during a phase of slowdown, is a first for India

2 Fund managers are under no pressure to deploy, as limited partners (LP) prefer a reasonable investing pace over the frenzy of 2021

3 As international LPs may shift their attention to other markets and asset classes, Indian VCs seek to ensure their cash reserves last longer

4 International investors remain bullish on the long-term growth prospects of India

5 Many first-time foreign LPs are expected to enter the Indian private markets due to China’s crackdown on tech firms