Sequoia and Accel lead VC investments during the funding winter
- ByStartupStory | December 26, 2022
According to data from market analytics platform Venture Intelligence, Sequoia Capital dominated venture capital investments in India in 2022, closing 71 deals as of November, however this was 30% fewer than the 103 deals it closed the year before.
In 2022, venture capital businesses also experienced a funding shortage, which forced them to scale back their risky wagers. Up until the end of November 2022, VC firms closed 1,075 deals in India, down from 1,212 deals during the same time period in 2021.
Due to a dip in late-stage funding activity, deal sizes did, however, significantly decline in 2022 despite a lower decline in the number of transactions. Due to this, the size of venture capital investments decreased by around 34%, from $35.4 billion in the same time of 2021 to $23.2 billion as of 30 November in 2022.
Sequoia has been able to maintain its top spot in recent years despite the difficult market conditions thanks to its emphasis on early-stage venture and growth deals in India and its accelerator programme, Surge, which incubates and finances budding firms. Climate-focused company Climes, influencer network Rigi.Club, financial startup Hubble, and B2B sales and intelligence platform Apollo.io are a few of Sequoia’s investments for 2022.
Sequoia completed 87 and 88 deals from January through November of 2019 and 2020, respectively, making it the top investor by volume in both years. The venture capital firm, which has been making investments in India since 2006, collected a record $2.85 billion over three funds to help businesses in South-East Asia and India, demonstrating that it has enough money for the upcoming several years.
Rival Accel, which kept its place as the second-most active VC firm in India but closed 19% fewer deals this year, invested in 54 firms in that country till November. A $700 million fund with a focus on South-East Asia and India was also unveiled by the venture capital firm in March. The company has so far committed more than $2 billion to the South East Asian and Indian startup ecosystem. Requests for comments from Sequoia Capital and Accel were not met with a response.
According to Kashyap Chanchani, co-founder of The Rain Maker Group, an investment bank with a focus on technology, deal flow is anticipated to increase from the current year through 2023 but will not reach 2021 levels.
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