Image credit: Accel Partners
We were excited when Accel Partners announced its $400 million venture fund in India back in January. But after only eight months, things seem to have changed. The Times of India reports the bad news today that the fund has changed its mind, an unfortunate turn of events for the start-up community in the country.
Accel Partners will scrap its $400 million venture fund plans due to poor market conditions and increasing competition in the VC industry focusing on start-ups in their growth stage. Accel Partners will however remain in India to invest in early-stage start-ups.
It was reported that there are over 400 venture capital funds in India alone, many of which are created by financial professionals who quit their jobs to raise their own funds. Of course, big-name venture firms like Sequoia, IDG, and even Intel’s venture arm, are also in India, making investing more competitive.
Nonetheless, India is still a great place to start a business. Accel Partners pulling out its $400 million venture fund doesn’t change a thing about the country. It does, however, indicate that the investing space in India is getting a little crowded and there is more money than there are start-ups to invest in.
We have contacted Accel Partners India to see if we can get an update on this story.
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