Year in Review: VC firms sit on a pile of cash but wary of backing startups

India’s VC landscape is experiencing a shift. Despite raising $2.5 billion in 2024, investments remain cautious, totalling $10.9 billion. Executive churn is high, with senior figures leaving established firms. Smaller funds are stepping up early-stage investments as global giants pull back. This cautious approach marks a reset from the 2021 boom, impacting deal flow and investment strategies.

Some of these trends were reflected in major announcements by firms such as Peak XV Partners, which downsized its $2.85 billion fund by 16% in October—more than a year after it split from Silicon Valley heavyweight Sequoia Capital.

According to Longhouse Consulting, at least 22 senior executives at VC firms exited and moved to different firms or started their own investment platforms. These include Nexus Venture Partners’ Sameer Brij Verma, who started his own firm Northpoint Capital, and former ICICI Venture partner Subeer Monga who joined Sorin Investments.

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