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Tuesday, May 27
by
www.indiape.com
on Tue 27 May 2008 11:30 AM IST
Global and Indian venture capital firms are continuing to have faith in the India market unperturbed by the global economic uncertainties. While the US-based Mayfield Ventures is said to be in the process of raising $150 million, India's Gaja Capital Partners have initiated the process for a $200 million fund.
The appetite to absorb these funds in India is growing given the fact that $3.3 billion was invested here across close to 100 deals during the first three months of 2008, showing a growth of 22 per cent over the corresponding period of 2007.
"Despite the turmoil in the global financial markets, PE investments during this period registered a growth over the corresponding period in 2007 thanks to a spurt in deals in the ‘late stage' segment which accounted for 60 per cent of the amount invested," noted Arun Natarajan, Founder & CEO of Venture Intelligence, a venture research firm.
"While the steep decline in public markets is leading Indian companies to adopt a wait-and-watch stance vis-à-vis their fund-raising plans, in the medium term, the correction is likely to favour private equity emerging as an attractive alternative," he added. more »
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