VC market in India sees significant shift Following the Flipkart deal in Q1’17, India saw a major turnaround in VC activity during Q2’17. Investor interest has skyrocketed, particularly for deep tech solutions. A number of late-stage startups also began to consider acquiring early-stage companies as a way to quickly plug gaps in their portfolios. From an exit perspective, India is poised to see a couple of IPOs in the tech space early in Q3. Funding has also become more readily available, with some startup founders in India becoming angel investors themselves. During Q2’17, the government of India also announced a goods and services tax (GST) in a major tax policy shift. This is causing some concern for investors and companies of all levels. The impact of this development will likely become clearer over the next quarter.13 Trends to watch for in Asia Venture capital activity is posed to remain strong in Asia, with deep tech, autotech and healthtech continuing to be major sectors of interest. Heading into Q3, however, investors looking at China will need to keep a keen eye on the National Congress of the Communist Party in Beijing as the government’s new priorities will be set. The outcomes of this congress may have a significant impact on VC investment trends in 2018. 13 http://www.bbc.com/news/world-asia-india-40453774 © 2017 KPMG International Cooperative (“KPMG International”). KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated. #Q2VC