Industry observers believe that venture capital firms are increasing their exposure to innovation generated technology sector apart from the most favoured real estate and infrastructure sectors.
“The domestic VC industry is today focussed on areas where there is a wave of disruption and innovation happening led by trends like smartphone penetration, digitisation, data consumption and so on. This has led to reduced interests in sectors like healthcare, retail, finance, education, media and many others,” said Gaurav Awasthi, senior partner, IIFL Wealth.
Venture capital funds exited 10 e-commerce start-ups, 24 technology ones and 34 financial services startups in 2018, said Gaurav.
Amit Patni, director of Campden Family Connect agreed on investment strategy in technology driven sectors while he says that most ultra HNIs are exploring newer avenues like big data, internet of things, artificial intelligence and fintech space through VCs.
Another preferred sector among VCs is real estate. “There are large investments currently being done by offshore and institutional PE/VC funds in commercial real estate and infrastructure assets. These investments are being done with an objective of locking long term attractive yields,” said Gaurav.
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