FROM BROWNIES TO BAGS: PRIVATE EQUITY, NOT VENTURE CAPITAL, IS FUELLING ACTIVITY ON DEAL STREET.

PRIVATE CAPITAL markets seem to be buzzing, the turbulent global geopolitical landscape notwithstanding.

- BY TAMANNA MOHANTY

Interestingly, it’s private equity (PE), not venture capital (VC), that’s emerging as the flag bearer of renewed investor enthusiasm. But there's a catch—the focus is on mature companies instead of the traditionally vibrant startup ecosystem.

VC activity cooled off significantly in the first half of this year. According to a CB Insights report, venture investments in the first half of 2025 fell by 21% year-on-year to $5.7 billion—a pace that puts the year on track for a five-year low.

PE, meanwhile, saw a less severe drop. Deal volumes slipped by 8% year-on-year. However, the drop in total equity investments was sharper, down 36% to $5.6 billion in the first half.

Yet, July has brought in a fresh momentum, as PE deals began to pick up pace. This shift signals renewed investor appetite, particularly for opportunities in consumer-focussed enterprises, hinting at brighter prospects for the private capital landscape.

The sweet deal