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Private equity, venture capital funds’ investments decline 4% in March
Private equity and venture capital funds' investments declined by 4 per cent to USD 5.3 billion in March 2023 as against the year-ago period, a report said on Monday.
In terms of number of deals, there were only 82 transactions in March 2023 as against 125 in the year-ago period, as per the report by industry lobby IVCA and consultancy firm EY.
For the January-March quarter, the deal activity declined by 21 per cent by the value of investments to USD 13.3 billion as compared to the year-ago period.
The consultancy firm's partner Vivek Soni said collapse of Silicon Valley Bank led to a spike in uncertainty, further exacerbating the tight funding environment for startups.
"As a result of these headwinds, the startup space is expected to continue witnessing consolidation as high-burn companies struggle to raise funds in up rounds and will look to merge/sell to their well-funded peers in primarily stock swap transactions," he said.
The overall deal activity is down because of the mism