VCs invested $127 million in online companies in India during 2007

Venture Capital firms invested $127 million across 25 deals in online services companies in India during 2007, as compared to $145 million across 23 deals in 2006, according to a joint study by Venture Intelligence and US-India Venture Capital Association.

Over all, VC firms invested $543 million across 98 deals in India during 2007. The amount invested during 2007 was slightly higher compared to 2006 which had witnessed 94 deals totalling $500 million.

“With early stage investments accounted for about 66% of all investments during the year, the resurgence in seed and first round investments has been a key highlight of 2007,” says Arun Natarajan, founder and CEO, Venture Intelligence. Over 50 per cent of the VC investments during 2007 were below $5 million including 23 per cent below the $2 million threshold, the US-IVCA/Venture Intelligence study showed.