Google to buy 30 percent in seed-stage fund

By siliconindia   |   Monday, 12 November 2007, 20:30 IST
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Mumbai : Google will be investing up to Rs 22.5 crore in Ventureast TeNet Fund-II, a seed-stage fund that will invest in technology companies trying to establish their foothold. The fund is promoted by Tenet Group of Chennai IIT and Hyderabad-based Ventureast Fund Advisors. "Google has invested Rs 15 crore in this fund so far and is expected to put in the remaining amount by March 2008, when the fund is scheduled to close," said, Sarath Naru, Managing General Partner, Ventureast. Google's investment in the fund will be 30 per cent and the remaining will be held by other investors, including SIDBI and Technology Development Board. Ventureast TeNet Fund has a total size of $18.75 million. Seed-stage funds, as the name suggests, invest in early-stage companies, plying in technology-based sectors such as IT, renewable energy and bio-technology. Google's Indian fund investments are learnt to be the first venture fund investment of the US Internet search engine firm, which has clocked a $4.23 billion revenue in the quarter ended September 30. Google, which has largely been seen interested in investing in high-end technology-related ventures, is likely to come up with more investments in Indian venture funds in future, according to industry sources. VentureEast TeNet II fund is focused on technologies and solutions to the SME sector and in bridging the digital divide in the Indian system, Naru said. Google has also recently joined the Indian Angel Network, an organisation that supports enterpreneurship in the country.

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