Venture debt firms experienced a robust 2019 in India, thanks to an increase in deal volume and their size though they are preparing for a bleaker 2020 as investor sentiment turns grim. With a venture capital slowdown expected after a three-year funding boom, debt investors are also revisiting their strategies despite a general mood of optimism so far. “Since venture debt derives from the venture equity market, our model will generally follow the sectoral trends set by VCs. Unlike some VC funds, venture debt funds are also sector-agnostic, with each fund deploying in sectors they feel they are underexposed in. To be sure, the expected caution from venture debt funds does not necessarily mean a potential decline in their lending.

Source: Mint December 29, 2019 18:00 UTC