Bangalore: India is set to be the next big market for global risk capital, according to data collated by early stage venture capital firm IDG Ventures.
The firm estimates that $75 billion of private equity and venture capital will flow into India over the next five years, nearly double the $40 billion capital that came into the country between 2004-2009.
Over half this capital inflow will go to new businesses in sectors such as information technology services, manufacturing, healthcare, engineering and construction, while nearly a tenth of the money is expected to fund early stage, high-risk ventures in the technology segment.
India is now an attractive market for global risk capital, as the economy expands at an average of 7 percent and the appetite for such capital shrinks in the US, the world’s largest market for private equity and venture capital, following the global economic slowdown.