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News >> Technology >>
VCs bet big on South Asian companies
By siliconindia staff writer
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Monday, 14 June 2004, 19:30 IST
MASSACHUSSETTS: South Asian-run companies in the United States collected $1.08 billion in venture capital last year, an increase of 5.3 percent over 2002, according to the third annual survey released today by the IndUS Business Journal, one of the premier newspapers covering South Asian businesses in the United States.
"This number, which is almost certainly a conservative one, comprises about 6.1 percent of all the venture capital raised by US companies in 2003," said Mishra Group Inc managing partner, Upendra Mishra. The Group publishes IndUS Business Journal. "Considering the continued struggles of the venture capital market, Indian and other South Asian entrepreneurs fared extremely well. Their innovative companies continued to draw investment interest in a number of different industries," he added.
US companies raised $17.8 billion in venture capital in 2003, down from $19.4 billion in 2002, according to Ernst & Young LLP and VentureOne.
"What's most amazing is that the increase occurred during a year when venture investment dropped, continuing its sag from the tech collapse," said IndUS Business Journal editor, Martin Desmarais. "It's a strong testament to the determination of South Asian and Indian entrepreneurs, and it also shows the faith investors have in the group," he stated.
According to IndUS Business Journal research manager, Rohit Padgaonkar, "The dollar amounts and number of deals is conservative because some companies didn't respond to our surveys or traditionally don't release their investment numbers."
Some of the leading South Asian venture capital recipients in the 2003 include California, Sunnyvale based Infinera Corp ($53 million), Marlborough, Massachusetts based Axiowave Networks Inc ($45 million), California, Sunnyvale based Sanera Systems Inc ($35 million), California, Fremont based Ikanos Communications Inc ($33 million) and Austin, Texas based Molecular Imprints Inc ($30 million).
The top-five states with regard to venture capital money raised by South Asian companies in 2003 are California, with 36 companies raising $538.1 million, Massachusetts, with 16 companies raising $223.4 million, Texas, with four companies raising $74 million, New Jersey, with seven companies raising $62.1 million, and Georgia, with four companies raising $40.6 million.
The IndUS Business Journal also released a preliminary survey of venture capital raised by South Asian companies in the first five months of 2004. The survey reported that $480 million has been received so far, this year. This is ahead of last year's pace, when South Asian companies collected $413 million in the first five months.