Canaan plans expansion in India

By SiliconIndia   |   Thursday, 29 November 2007, 04:54 Hrs
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Bangalore: Canaan Partners, a twenty-year-old U.S. based early stage venture capital firm is planning to raise its eighth fund, targeting a corpus of $650 million. The seventh fund from which the VC is presently investing is $450 million. Currently Canaan has $2.5 billion under its management, reported Business Standard.

The company has been increasing its exposure in India and has so far committed close to $50 million in four companies during the past year and half, including investment in BharatMatrimony.com.

Canaan India head Alok Mittal confirmed that Canaan is in the process of a new fund of around $650 million and added that the India team is being expanded to handle the hike in the deal flows.

"We do not have a target of how much we will have to invest in India, but we are certainly looking for more opportunities," Mittal added.

The move by Canaan to raise its next round comes close on the heels of venture firms like Matrix India Partners, Sandalwood Capital and Sequoia, all raising early stage funds in the range of $300 million - $500 million with significant interest in India.

According to industry research, India should expect an investment of $500 million across 90 early-stage companies by VCs during 2007.

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