Investments bogged down by rising capital cost, easing competitive pressure

Investments bogged down by rising capital cost, easing competitive pressure

Subject :Economy

Context: Private equity and venture capital investments slipped to 19-month low in August. PE/VC investment in India plunged 83 per cent year-on-year to $2.2 billion ($11 billion) across 83 deals last month, according to the IVCA-EY monthly round-up. It is down 43 per cent compared to $4.1 billion investment made in July.

Concept-

• VCs and PE investors infused more than ₹5.5 lakh crore last year facilitating one of the largest start-up and growth ecosystems.
• The committee will help address issues around coordination among multiple agencies and departments such as the RBI, SEBI, Finance Ministry, DPIIT and Commerce Ministry.

Venture Capital & Private Equity-

• Private equity is capital invested in a company or other entity that is not publicly listed or traded.
• Venture capital is funding given to startups or other young businesses that show potential for long-term growth.