Deal Journal: Venture Capital Investment in India More Than Doubled in Second Quarter

"Venture-capital investment in India more than doubled in the second quarter after a relatively level amount of money moved into start-up companies there in the past few quarters."

"Venture firms invested $237.6 million across 17 deals in the three months ended June 30, compared with $108 million and 12 deals a year earlier, according to data from VentureSource, a unit of Deal Journal publisher Dow Jones. Since the first quarter of 2007, when venture capitalists flooded India with $436 million across 41 deals, investment had held steady at a quarterly average of roughly $118 million through the first quarter of 2008.

The biggest contributor to this year’s second-quarter jump is the $70 million, second-round investment in Laqshya Media, a Mumbai provider of out-of-home media advertising services.
Even with the second-quarter pop, investment is down through the first six months of the year, in part because of the strength of last year’s first quarter. Investors have put $360.5 million in 35 deals in the first half, down from $544 million and 46 deals a year earlier. By comparison, venture firms invested $2.15 billion in mainland China companies in the first six months of 2008."