Bangalore: A new venture was set up by Ranjan Pai, Manipal Education and Medical Group head along with former Infosys director Mohandas Pai and a group of investors and venture capitalists for an accelerator programme. The fund allocates an investment between $150,000-300,000 to startups from different verticals such as social media, mobile and cloud computing.

The Habit Fund will be managed by Sunil Bhargava, Silicon Valley venture capitalist and entrepreneur of mobile start-up incubator Tandem Capital and Rohit Bhagat, former Asia Pacific chairman of BlackRock Inc. The fund aims to raise $75-100 million, reports LiveMint.

In the course of action, the accelerator programme will have about 300 start-up applications every quarter, out of which 12 of them will be shortlisted for Series A, or early-stage funding and will take another quarter to be entirely operational. A close source said, “This fund is going to invest in the intersection of mobile and consumer, and the accelerator will be based in Bangalore.”

Currently, around $25 million have been allocated towards the fund, which has started processing applications and at least four start-ups have been shortlisted and are close to secure funding.

Compared to entrepreneurial destinations like Silicon Valley and Chile, India’s startup ecosystem has witnessed talent with entrepreneurs having easier access to customers, funding and venture capitalists.

According to investors and experts, acquiring Series A funding in India is tougher than primary seed funding and the country needs an environment of venture capitalists and accelerators that are willing to get around on budding start-ups. Majority of the venture capitalists in the country are hesitant to invest in early-stage start-ups unless they have a string and sustainable business model.

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