The new entity, Accel India Venture will focus on early-stage venture investing and the fund will be managed by four partners who currently are the partners of Erasmic Venture Fund (EVF).
Accel, started in 1983 has invested in companies like Walmart, Zimbra, BitTorrent, Comscore, FaceBook, JBoss etc and the India strategy is focused on early growth stage companies.
Erasmic, the $10mn fund was started in 2007 and has invested in 14 companies so far including Mu Sigma, Inbiopro, HolidayIQ, Kaati Zone, Myntra, Sconce, Virident and very recently FileMyReturns etc.
The new entity will raise fresh fund of $60 million and will pursue a multi-sector strategy, targeting opportunities in Technology, Technology-enabled Services, Internet, Mobile, Media, Life Sciences, Consumer Products and Services, and other high-growth sectors of the Indian economy.[source]
We had earlier reported that Erasmic is looking to raise $30mn – the question that still remains unanswered is whether Accel buyout could potentially result in Erasmic moving away from “pure” seed find (i.e. deal size <$200K USD) to early growth stage firms?