Sharp Decline in PE-VC Investments

Private Equity-Venture Capital (PE-VC) investments in late-stage companies have seen a dramatic 61% decrease over the past four years, signaling a cautious shift among investors. From a peak of $23.4 billion in 2021, investments plummeted to approximately $9 billion by the end of 2024.

Current Year Trends

The downward trend persists into the current fiscal year, with investments dropping to nearly $1.2 billion in the first quarter of 2025, compared to $2 billion during the same period in the previous year.

Expert Insights

Arun Natarajan of Venture Intelligence notes that growth and late-stage deals have been hardest hit by the 'Funding Winter' following the 2021 peak. Recovery is expected to be gradual, driven by domestic and long-term foreign investors.

Karan Agarwal from Wilson and Hughes highlights a market recalibration, with investors now prioritizing profitability over hypergrowth. This shift reflects in smaller, more structured investment rounds.

Future Outlook

Navin Honagudi of Elev8 Venture Partners anticipates continued selective investments, with a focus on sustainable sectors like AI and consumer tech, offering profitable and resilient business models.