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Kitven to raise funds for IT, BT and Nano technology
By siliconindia
Bangalore: The Karnataka Information Technology Venture Fund (Kitven) and its principal promoters have been enhancing technology investments in the State. The State-sponsored Kitven has floated a new fund Kitven Fund 2, with higher corpus of 
26.25 crore and increased investment outlay, reports the Deccan Herald.
The new fund will be invested in IT, BT and the new emerging Nano Technology space, besides other knowledge-based industries. The fund is subscribed by four institutions - Karnataka State Industrial Investment & Development Corporation (KSIIDC with 6.26 crore), Karnataka State Financial Corporation (KSFC with 7.50 crore), Small Industries Development Bank of India (Sidbi with 7.50 crore) and Karnataka Biotechnology and Information Technology Services (K-Bits 5 crore), said official sources who requested for anonymity. Sources also said that 2.5 crore has already been invested in a two-year-old technology company specializing in data security leak prevention software product. Moreover, three more companies operating in IT and BT space have approached Kitven.
The first fund which was launched in 1999, with 15 crore corpus, went into early stage investment of 50 lakh to 1.50 crore size. The fund was closed in 2006. The companies that benefited from the first fund were RelQ Software (recently acquired by EDS), Logix Microsystems, Cerebra Integrated Technologies, iLantus Technologies, Internet Component Management Group - ICMG and may more.
However, Kitven Fund 2 will also invest in capital instruments like preferential capital (convertible/redeemable), debentures or combination of any above instruments, though the preferred form of investment is equity.
26.25 crore and increased investment outlay, reports the Deccan Herald.
The new fund will be invested in IT, BT and the new emerging Nano Technology space, besides other knowledge-based industries. The fund is subscribed by four institutions - Karnataka State Industrial Investment & Development Corporation (KSIIDC with 6.26 crore), Karnataka State Financial Corporation (KSFC with 7.50 crore), Small Industries Development Bank of India (Sidbi with 7.50 crore) and Karnataka Biotechnology and Information Technology Services (K-Bits 5 crore), said official sources who requested for anonymity. Sources also said that 2.5 crore has already been invested in a two-year-old technology company specializing in data security leak prevention software product. Moreover, three more companies operating in IT and BT space have approached Kitven.
The first fund which was launched in 1999, with 15 crore corpus, went into early stage investment of 50 lakh to 1.50 crore size. The fund was closed in 2006. The companies that benefited from the first fund were RelQ Software (recently acquired by EDS), Logix Microsystems, Cerebra Integrated Technologies, iLantus Technologies, Internet Component Management Group - ICMG and may more.
However, Kitven Fund 2 will also invest in capital instruments like preferential capital (convertible/redeemable), debentures or combination of any above instruments, though the preferred form of investment is equity.
