VC biggies to tide over liquidity crunch: NVP

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Bangalore: It is unlikely that the liquidity crisis in global markets will affect top-tier venture capital firms in raising funds, says an industry official. The crisis in the global credit market has seen a slowdown in the private equity segment. Norwest Venture Partners (NVP) India MD Niren Shah said that top-tier VCs would not have much of a problem in raising funds and this is unlikely to be the case with the lower-tier VCs. NVP, a leading VC firm currently has $2.5 billion capital under management with the current fund worth $650 million. NVP managing partner Promod Haque said that in the current situation of market crisis it would be advisable for VC promoted companies to be more prudent in their cash management. NVP largely invests in the technology segment and specializes in early-stage ventures. It has about 27 companies in India, with majority of them being U.S. headquartered with engineering presence in India. It has also made investments into ventures in India, catering to the domestic market. Haque said some of the key segments of their focus will be mobile, consumer Internet, travel and semiconductor. NVP has also announced the opening of its new office in Bangalore and the induction of Mohan Kumar as Executive Director of its India operations.
Source: IANS
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