VC fundraising set for a ‘supercycle’ in 2022

If 2021 was a landmark year for India tech, with cash infusion of $40 billion and the birth of 43 unicorns, 2022 is set to be a banner year for startup backers, who are entering a fundraising supercycle. 

At least five top venture-capital firms from India have hit the road or are expected to in the coming months to gather cash for new corpuses, making it potentially one of the busiest fundraising periods. These are Sequoia, Accel, Elevation Capital (previously known as SAIF Partners), Lightspeed Venture Partners and Matrix Partners. 

While the fund sizes are still being finalised, the firms might collectively scoop up $3.5 billion to $4.5 billion for making technology bets, according to people privy to the discussions. 

The Money Train

The developments add further momentum to a sector where a record number of funds are already in the works. Data from Preqin, an alternatives industry research platform based in London, indicates that 93 India-focused VC funds are looking to collect nearly $9 billion. This is the highest in terms of the number of investment vehicles in motion and target capital.