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  "documentTitle": "ey ivca monthly pe vc roundup february 2023",
  "authorId": "MorganStanley",
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      "text": "1 Considering only disclosed deal values\n2 For this analysis we have considered both service and produced based companies in the technology sector",
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      "text": "Fears of a recession, stoked by rising interest rates in developed markets, have hit the revenues, sales, and growth prospects of many global tech firms. A major share of Indian tech firms' earnings comes from global clients. As a result, most Indian tech firms are following global tech trends in terms of earnings downgrades and derating of valuation multiples.\nWhile in the listed space the IT index is down by almost 30% from the post COVID peak, the moderation in valuation multiples in the private markets is less acute than in the public markets.\nWhile buyouts had recorded almost a 90% y-o-y decline in PE/VC investments in 2022, growth and startup investments grew over the same period.\nThough last year the impact on the PE/VC deal activity in the technology sector in India was primarily limited to the large deal segment with no mega buyouts and secondary trades between PE funds materializing, the slowdown in deal activity seems to have gotten worse in 2023, extending into the early-stage and startup space as well. Start up space has seen an over 80% decline in value of PE/VC investments in the first four months of 2023 (US$250m vs. US$800m in 2022).\nNot only have the deal sizes declined, deal count too has sharply fallen in 2023, recording a 55% y-o-y decline in the number of deals in the Jan-Apr period.\nPE/VC investments in the India based SaaS startups was not as significantly impacted in 2022 when compared to other segments. However, lengthening sales cycles and continuing cost reduction by enterprise customers has started posing challenges of falling revenue for Indian SaaS startups. This has impacted the funding momentum in 2023 and may impact fund raising plans of many of the high flying SaaS startups.",
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      "text": "PE/VC investment value: 55%",
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      "text": "Spotlight: Technology sector PE/VC investment trend",
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