These three firms are backed by practically all the best-known venture capital firms operating in India: Accel Partners, Kalaari Capital, Sequoia Capital, Matrix Partners and Nexus Venture Partners. Since 1997, venture capital firms in the US have returned less cash to LPs than the invested amount, according to a 2012 report by the Ewing Marion Kauffman Foundation, a think tank. Indian VCs haven’t seen any such blockbuster exits, which is why Flipkart, Snapdeal and Ola are so important. “In the worst-case scenario, if Flipkart’s valuation dips to $5 billion or below, opportunist investors will flee India for the short term and a few venture capital firms may close down. The endgame for Flipkart, Ola and Snapdeal is far from clear.

Source: Mint September 25, 2016 17:48 UTC