Corporate Investors are getting bullish on investing in the Indian tech sector; and while Intel Capital
Cisco has already earmarked $100mn for investing in India and is focusing on few specific tech sectors – video technologies and virtualization of data centres.
The value of VC and private equity deals has fallen 28% year-on-year in the July-September quarter to $3 billion from $4.2 billion in the year-ago period (source) and in general, the slowdown has resulted in decreased valuation – turning the sector into an interesting investment arena for biggies.
What are other Indian Corporates doing?
- Google invested in Seedfund and Ventureast and is indirectly involved in investments.
- Infosys had incubated and spun-out companies like Yantra and OnMobile.
- Reliance Technology Ventures, Capital18 and the Future Group (brands like Pantaloons and Big Bazaar are part of this group) have established formal investment programmes.
- Airtel ‘s launched Rs. 200 crore innovation fund
Perspective from US
According to PricewaterhouseCoopers and the National Venture Capital Association, in the first half of 2008, corporate venture capitalists were involved in roughly 300+ companies or 20% of VC deals signed and invested over $1 billion or 7% of overall venture capital dollars invested in US companies.
What’s your take on Corporate Investment in India? If you have ever interacted with a corp venture, what has been your experience?
Highly Recommended Read: Outlook for Indian Corporate Venture Capital