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New funds aim start-ups, NRI investors shift focus to India
By siliconindia
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Bangalore: Bad time turns good for start-up companies in India as new investors shift focus towards such firms. Venture capitalists such as Axon Ventures, Mercatus Capital, Epiphany Ventures, Garage Again and nFactorial are all set to back start-ups in India who have great ideas. Moreover, Silicon Valley-based funds managed by Indians are also seeking to pour more investment in India than U.S., reported The Economic Times.
Realizing that the game today is about funding in small tranches and mentoring in large doses, Tejas Sati co-founded Axon Ventures has invested in media technology provider Outdo Media Tech and information management firm Textual Analytics. "Capital is there, but we see ourselves as filling non-cash gaps in business development and strategic finance," opined Sati.
According to a Bangalore-based boutique investment banker, overseas investors are now turning their focus to India, as they believe that the country is better placed to reap the benefits of a revival when it happens. "They are keen to invest up to $25 million in venture capital funds or start-ups," said the banker. Silicon Valley-based funds like Edgewood and US-based VC Accel are planning to increase India investment.
Apart from that Epiphany Ventures, a $25-million sector-agnostic fund, will invest up to $2 million in start-ups. Mercatus Capital, a Singapore-based early stage fund, has entered the Indian market with investments in Lucido Software and iFlapp Technologies. nFactorial is a Pune-based mentoring firm aiming to build software product firms by investing their experience and ideas.
"There is a new rush towards this stage of funding primarily because of the slowdown and also availability of talent that provides the required management bandwidth to take on a vast portfolio," said Vishal Purohit, founder of Garage Again, a new fund that will invest in early stages and throughout the development.
