From Theobroma to VIP Industries, private equity fuels deal street activity

/3 min read
Private equity, not venture capital, is fuelling activity on deal street.
From Theobroma to VIP Industries, private equity fuels deal street activity
 Credits: Anirban Ghosh

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