This article is a maiden attempt at exploring determinants of stage-specific investment choices of Indian venture capital and private equity (VCPE) firms. Analysis of 5,782 VCPE investment deals during 1998–2016 shows that firms’ preferences to invest in various stages (early vs. late) are significantly affected by the characteristics of the VCPE firms, features of the deal, and characteristics of the investee firms. More specifically, experience and ownership (foreign vs. domestic) of VCPE firm, type of deal (syndicated or otherwise), investment size of the deal, and location and industry of the investee firm influence the stage of investment. Detailed empirical analysis shows that younger VCPE firms and those with domestic investors prefer to invest in early stages, presumably because they wish to build a reputation and also leverage their proximity with investee firms to manage high market and technological risks associated with early-stage investments. Syndication is another mechanism used to manage the risks associated with early-stage deals. Investee firms in industries that have lower investment requirements or shorter gestation periods and those located in regions with a mature entrepreneurial ecosystems are more likely to attract early-stage investments.

JEL Classification: G24, L26, D81

本文是探索印度风险投资和私募股权 (VCPE) 公司特定阶段投资选择的决定因素的首次尝​​试。对 1998-2016 年 5,782 笔 VCPE 投资交易的分析表明，企业在不同阶段（早期与晚期）投资的偏好受到 VCPE 公司特征、交易特征和被投资公司特征的显着影响。更具体地说，VCPE 公司的经验和所有权（外国与国内）、交易类型（银团或其他）、交易的投资规模以及被投资公司的位置和行业都会影响投资阶段。详细的实证分析表明，年轻的 VCPE 公司和有国内投资者的公司更喜欢早期投资，大概是因为他们希望建立声誉，并利用与被投资公司的密切关系来管理与早期投资相关的高市场和技术风险。联合是另一种用于管理与早期交易相关的风险的机制。投资要求较低或孕育期较短的行业以及位于创业生态系统成熟地区的被投资公司更有可能吸引早期投资。

JEL 分类： G24、L26、D81