COVID-19 impact: VC, PE-VC exit deals tumble in Q1 2020

“Starting Q1, IPO markets started to evaporate, as investors started pulling money out of emerging markets. Given COVID-19, both funds and corporates also slowed down – funds started to emphasize on existing portfolio companies and corporates wanted to ascertain their own cash positions before placing new bets,” said Pankaj Raina, Managing Director, Research and Investments, Zephyr Peacock.

Raina added that even bankers were not able to sign new mandates. “Existing deals in the pipeline stalled as the valuation scenario was cloudy, and given the impact of COVID-19 on the overall economy, it became difficult to ascertain the true business or profitability and cash position of companies willing to sell,” he said.

Click here to read the full article on “The Hindu Business Line”

Below is an excerpt from the post that first appeared on The Hindu Business Line on 22 May 2020:

It is not only the funding for start-ups that have crashed due to the pandemic, but also the number of private equity-venture capital (PE-VC) and venture capital (VC) exit deals, in the first quarter of 2020.
According to data from Venture Intelligence, a firm that tracks private companies’ investments, financials and valuations, the number of PE-VC exit deals fell to 33 in calendar year Q1 2020, the lowest in the past 10 years. The number of VC exit deals also fell to 16, the lowest since Q3 2015.

Click here to read the full article on “The Hindu Business Line”