Let's cut to the chase. A91 Partners recently closed their second fund at a huge $665 million. So long as they are paying attention to global VC trends, that’s very good news for them and even better news for anyone else. Because while everyone's been obsessing over China, the real story is India's quiet, data-backed dominance in venture capital returns.

India's VC Return: Undeniable Data

Forget the hype. Look at the numbers. For the last ten years, Indian VC funds have outperformed Chinese funds, on average. Given this, we can see this trend most sharply when we look at the net returns to LPs. Data doesn't lie. China is likely to have greater volumes of deals, particularly in sectors supported by government stimulus. The return on investment tells a different story.

China’s impact on the global economy is undeniable. Yet the macro regulatory climate, compounded by growing government intrusion, is making it harder for innovators to be profitable. What we are advocating against is the kind of censorship and access to information that limits innovation and kills creativity. India, despite its own challenges, offers a comparatively laissez-faire environment where startups can breathe and scale without constant fear of regulatory crackdowns.

  • Exit Opportunities: Indian startups have more diverse exit routes, including strategic acquisitions by global players and increasingly vibrant IPO markets. Digit Insurance's recent IPO, an A91 portfolio company, is a prime example.
  • Market Size and Demographics: India boasts a massive, young, and increasingly digitally savvy population. This translates to a larger addressable market for startups.
  • English Proficiency: India's widespread English proficiency gives it a significant advantage in attracting international talent and capital.

Consider this: a recent study showed that VC-backed companies in India are 2.3 times more likely to achieve a successful exit compared to China. That’s not just good fortune—that’s a sign of a much more favorable ecosystem.

Patient Capital Wins The Race

A91’s investment philosophy – patient capital to create lasting Indian businesses – couldn’t be more right. This isn’t about simply pursuing low-hanging fruit or passing fads. This is why investing in companies with the ability to reshape their entire industry is so important. We owe it to them to arm them with the time and resources to succeed.

We're not just talking about tech startups. A91’s portfolio companies include market leaders like Blue Tokai Coffee, Rare Rabbit and Paperboat. These brands are making a huge emotional impact in India and building great, sustainable businesses in the process. This is a key differentiator. While China has focused heavily on hardware and manufacturing, India is building a vibrant consumer economy powered by innovative brands.

This brings up an unexpected connection: think of it like winemaking. Like it or not, China is making more and more bulk wine—faster. Meanwhile India is looking to produce a smaller number of better quality wines. So they’re taking their time creating the grapes – fine-tuning the varietals to get just the right blend. Which one delivers a better return?

Missed Opportunity: Your Move Now

Let's be blunt: if you're an investor sitting on the sidelines, waiting for the "perfect" moment to jump into the Indian market, you're already late. The smart money is already moving in. Funds like Accel India, Peak XV Partners, Lightspeed Venture Partners, and now A91 are raising massive funds to capitalize on the opportunity.

Fear of missing out on the next big thing should be sinking in for you about now. Picture this – the early days of the internet boom. Those who were afraid were left out of the greatest generational wealth creation opportunity of our lifetimes. The same is true for India today.

The Indian VC market isn’t a bed of roses either. The potential rewards definitely outweigh the risks. The data is clear: India is where the smart money is headed. Are you ready to join them? Fear is what stands between you and success. Don’t miss out on what could be the most profitable investment opportunity of the decade! The clock is ticking.

  1. Do your own due diligence: Don't just rely on headlines. Dig into the data and understand the underlying trends.
  2. Network with local experts: Connect with VC partners, startup founders, and industry analysts in India.
  3. Consider co-investing: Partner with established funds like A91 to gain access to deal flow and expertise.

The Indian VC market is not without its challenges. But the potential rewards far outweigh the risks. The data is clear: India is where the smart money is headed. Are you ready to join them? Don't let fear or uncertainty hold you back from what could be the most lucrative investment opportunity of the decade. The clock is ticking.