MUMBAI: New Enterprise Associates (NEA), the US-based venture capital firm, which manages over $8.5 billion spread across 13 different funds is expected to announce a new investment in an IT firm in the services vertical next week.
The US-firm would invest around $200 million in different IT and healthcare companies in India over the next two years, sources said.
The firm had recently invested in the proposed Indian operations of US-based mobile payments company Obopay and personalised search engine firm Minekey, incubated at IIT-Kharagpur.In keeping with its India-push, the company plans to shift handling of its Indian operations from the US to Bangalore.
Additionally, the Indian office will also monitor the company’s Chinese operations.
India and China, the two fast-growing Asian economies, have been identified as an integral part of the firm’s geographical expansion strategy. The focus will be on mid-size enterprises in the technology sector.
NEA, which started operations in 1978, has funded over 500 companies in the IT and medical sectors. The NEA model is built on the philosophy of team achievement and it measures success by the successes of the entrepreneurs.
The average tenure of NEA’s ten general partners exceeds 15 years-longer than many venture capital firms in the business. With offices in California, Virginia and Maryland, NEA operates as close to the people and places where much of the leading IT and medical thinking happens.
The last two years have witnessed a slew of venture funds entering India. Blackstone, 3i, Helion Ventures, New Enterprise Associates and Matrix Partners have all invested in the country.
Domestic players like IDFC Private Equity and IL&FS have also obtained a strong foothold in the market. These funds are, however, face stiff competition from hedge funds and pre-IPO funds like Farrallon Capital, New Vernon, Soros Funds Management and Octant Capital.
Source : dnaindia