TLDR:
Key Points:
- Venture capital firms in India are hiring experts with investment banking expertise to help with exits and redistribute capital to limited partners.
- Leading funds such as Lightspeed, Accel, and Matrix Partners India have recruited professionals to facilitate successful exits.
The Indian venture capital ecosystem is maturing, and returning capital to limited partners has become crucial for VCs looking to raise subsequent funds. There is a focus on finding strategic exits for portfolio companies and guiding them towards IPOs. The lack of exit liquidity opportunities has been a major concern for investors in India, prompting VCs to hire experts in corporate development roles. The article highlights the growing importance of real dollar returns for limited partners, indicating a shift towards more strategic exits rather than relying on paper money and gross IRR. Overall funding in Indian startups saw a significant decline in 2023 amid global macroeconomic challenges and conflicts.
