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KPMG Enterprises Q3’17 Venture Pulse Report

The report offers insights into the key trends, opportunities and challenges impacting venture capital internationally and important regions around the world.

October 26, 2017 / 04:05 PM IST

While the number of VC Deals globally continued to decline, the total number of VC investment remained strong quarter on quarter. The top 10 deals globally, accounted almost one third of VC funding, highlighting the important role of large deals. The continued decline in the number of deals, particularly at the earliest deal stages, has also shown how investors continue to be cautious with their investments – conducting significant due diligence of potential deals even at the seed and angel funding stages. This has led to significantly fewer deals, although the companies’ that are getting funding are proving to be ones of high quality with strong business plans and expected paths to profitability. Healthtech and autotech remained key areas of investment during Q3’17,

Even though we saw a decline in the number of VC deals across Asia , it experienced another strong quarter fueled by high valuations in Q3’17. Once again, China led the way with huge mega-deals in AI, autonomous vehicles, and edtech.

India also experienced a positive quarter, with ecommerce and fintech standing out as favorite industries for VC investors.

Below are some key highlights  from India and Asia Pacific:

  • Tech giants in China, looking at ways to  build their AI capabilities in-house, investing significant amounts of money and snapping up AI talent to build out their teams. They are looking to India and Southeast Asia to acquire the technology and talent to fuel their advancement

  • Edtech is set to join fintech and autonomous vehicles as a key areas to watch, garnering significant attention in Q3’17 for its potential to open up education channels over the internet

  • India experienced a solid Q3’17, buoyed by ongoing positive investor sentiment. Internet, mobile, and e-commerce companies all enjoyed considerable funding in Q3’17, while traditional financial services and banking companies increased their interest and VC investments

  • Increased investment activity in India was seen in the past few quarters, which includes funding in e-commerce, mobile wallet companies and hotel aggregators

  • Fintech continued to gain traction in India during the quarter, receiving a boost from several economic developments this year

  • Trends to watch for in Asia:

    • AI will likely continue to dominate the headlines as the technology becomes integrated into other sectors and companies begin to realize monetization opportunities

    • With fintech activity ripe across Asia, from the digital currency movements in Japan to the transformation of payment methods in India, investors will likely continue to support initiatives aimed at digitizing the banking and financial services sector.

first published: Oct 26, 2017 01:12 pm

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