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Rediff.com  » Business »  US VCs plan $400 mn for Indian start-ups

US VCs plan $400 mn for Indian start-ups

April 23, 2007 17:58 IST

Indian start-ups are likely to experience a fillip as around 40 US venture capitalists  and private equity holders have already lined up $400 million to invest in the country.

"Around 40 venture capitalists and private equity holders have raised $400 million to place heavily in start-ups in India," a joint study by Assocham and Ernst & Young has revealed.

The 40 PEs and VCs include names like Intel, Cisco, Motorola, Sequioa Capital, Oak Investment Partners, Matrix Partners, Sherpalo Ventures, International Finance Corporation, Warbugs Pircus, 3I, Goldman Sachs, Blackstone and others.

The study on 'Indian PE/VC Market Firing on all Cylinders-Liquidity all round' by Assocham and Ernst and Young has forecast that with rising enthusiasm for India, the number of such VCs and PEs would multiply in the next two years.

In 2006, investment to the tune of $7.5 billion was made by PEs and VCs in the country as against $2.2 billion in 2005. While in the first three months of 2007 calender year, PE and VCs activities worth $2.4 billion came into effect in India from 78 deals, the study said.

After 2000, there has been a continuous up tick in the total value of investments in India. Investments of $1.67 billion in 2004 surpassed the previous high of $1.16 billion in 2000.
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