While India’s share of total venture capital funding that went to Asia in Q3 calendar year (CY) 2022, saw a decline compared to the previous quarter, China gained market share. This, despite the internal crackdown on tech companies and apprehensions of PE funds.
Based on data analysis by CB Insights, India’s share of venture capital funding in Q3 CY2022 fell by nearly half to 14 percent (of total VC investment of $20.1 billion) compared to 22 percent in Q2 (of total VC investment of $29.8 billion). Yet during the same period, China’s share of total venture capital funding in Asia went up from 34 percent in Q2 CY2022 to 42 percent in Q3 CY2022, even though overall VC funding shrank in Asia.
At the global level, India’s share of VC funding has fallen from 5.8 percent (of global VC funding of $112.68 billion) in Q2 CY2022 to 3.75 percent in Q3 CY2022 (of total global VC funding of $74.5 billion). China saw a slower decline.
VC funding in India in Q3 CY2022 fell to a ten-quarter low to just $2.8 billion for 387 deals. This was a 58 percent decline over the previous quarter ($6.6 billion for 404 deals). This is the lowest level since Q2 CY2020, when the Covid-19 pandemic hit the global economy.