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It’s Raining Cash In Tamil Nadu: State’s Startups See Investments Worth $2.3 Billion In 2018; Total Of 12 Deals Struck
Swarajya Staff
Dec 27, 2018, 08:47 AM | Updated 08:47 AM IST
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Tamil Nadu’s startups have registered investments close to $2.3 billion in the year 2018, The Hindu has reported. This is up from $0.6 billion in the year 2017.
As on 25 December, the data collected by Venture Intelligence, a research firm, shows that nationally, VC firms invested about $31 billion (across 709 deals) compared to $24 billion (734 deals) in 2017. Venture Intelligence focuses on private company financials, transactions and their valuations.
Tamil Nadu concluded 12 deals this year in terms of angel investments. This number is the same as that of 2017. At the national level, there were 185 angel investments in 2018 (as on 25 December) against 197 deals in 2017.
Founder and managing director of Venture Intelligence, Arun Natarajan, said 2018 was very strong in terms of Growth Capital funding in the second half. He pointed out that attracting early-stage funding, especially Seed and Series A, has not been easy.
Arun opined that there could be a pause in the mega-funding of growth stage start-ups due to volatility in the public markets and national elections which are scheduled for 2019. Further, he added that Income Tax Department notices to start-ups and their investors to collect ‘Angel Tax’ had a chilling effect on angel investments.
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