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VCs coming in droves to India

Times News Network

Thursday 5 February 2004

BANGALORE: Entrepreneurs in the software export business can hope for better funding options and increased business deals, with leading US-based VCs landing in India in droves.

Late last year, a delegation of leading VCs visited India. A bigger team of blue chip VCs from US is now on an India tour. This TiE (The IndUS Entrepreneurs)-led 25-member VC delegation met with a few IT entrepreneurs and interacted with leading software export vendors in Bangalore on Wednesday.

The visit will help VCs familiarise with India and get to know better the capabilities of software services exporters in the country, said Sridhar Mitta, president, TiE India and managing director, e4e Labs. (Is India the best destination for VCs?)

The delegation potentially could influence more than 500 portfolio companies that are seeking cross-border business opportunities.

Delegation members manage funds in excess of $ 10 billion. Participants include JP Morgan Partners, Bay Partners, Sigma Partners, Draper Fisher Jurvetson, Tallwood Venture Capital, among others.

Mitta said that interaction with companies and entrepreneurs will help VCs to gain a clear understanding of the quality and capabilities of the Indian IT industry.

Besides getting funds, companies can benefit from business opportunity with some VCs advising their US investee firms to outsource portions of their work to India.

Samir Kumar, managing director of Acer Ventures for instance said that visit by top tier VCs help the cross border (US-India) deals to further increase.

Ganapathi Subramanian of JumpStartup is of the view that a mere visit by VCs does not guarantee immediate fund flow into the country. It will however improve India

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The Economic Times, Thursday, February the 5th, 2004.

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