Dynamics of Venture Capital and Private Equity Investments in India: An Empirical Analysis

James Dominic () and Anto Joseph
Additional contact information
James Dominic: Indian Institute of Management Tiruchirappalli, Tiruchirappalli 620024, India
Anto Joseph: Department of Business Administration, Rajagiri College of Social Sciences, Cochin 682039, India

JRFM, 2023, vol. 16, issue 11, 1-23

Abstract: In this study, we explore the inter-dynamics among holding periods, return multiples, fund types, and exit routes of different VC and PE investments in the emerging economy context of India. We employ data spanning from January 2004 to March 2021, and our results indicate that there is a negative association between the holding period and return. The results also indicate that the average holding periods for India-dedicated and foreign funds are not significantly different. Furthermore, the results show that India-dedicated funds outperform foreign funds significantly in generating returns. Finally, the findings suggest that all exit routes can potentially yield similar results, contrary to the prevailing belief that certain exit routes guarantee superior returns. These findings provide useful insights for a spectrum of stakeholders, including entrepreneurs, practitioners, investors, financial analysts, and policymakers.

Keywords: venture capital; Private Equity; VC exits; holding period; return multiple; exit routes; strategic sale; secondary sale; IPO; buyback (search for similar items in EconPapers)
JEL-codes: C E F2 F3 G (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.mdpi.com/1911-8074/16/11/475/pdf (application/pdf)
https://www.mdpi.com/1911-8074/16/11/475/ (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:gam:jjrfmx:v:16:y:2023:i:11:p:475-:d:1273917

Access Statistics for this article

JRFM is currently edited by Ms. Chelthy Cheng

More articles in JRFM from MDPI
Bibliographic data for series maintained by MDPI Indexing Manager ().