New Delhi, April 2 -- Escalating tensions in West Asia are starting to delay fresh capital commitments into India-focused venture funds, with investors adopting a wait-and-watch approach, experts told Mint.

At least one early-stage venture capital firm has lost a $3 million commitment from a West Asia-based limited partner after receiving a term sheet, its managing partner said, requesting anonymity because the discussions were private.

"It was expected to be routed in the first week of March but at the last moment, the investment was cancelled," the managing partner said. The investor cited the evolving geopolitical situation as the reason for pulling back.

West Asia has become an increasingly important source of funding for Indian ve...