| Venture capital investments in the country registered a near 4 per cent increase in the first quarter of 2007 calendar as investors pumped in $130 million (about Rs 560 crore) through 20 deals. More than half this amount was pumped in information technology and related sectors, an industry study release said on Tuesday. |
| The VC firms pumped in $73 million in IT/ITeS firms, with 14 deals taking place during the quarter, the Venture Intelligence study said. Besides, conventional IT/ITeS firms such as outsourcing units and Internet-based services providers, the investors also showed interest in companies with newer business models such as enterprise software. |
| “We are witnessing a significant number of early-stage investments taking place in the $1-3 million range, which augurs very well for the VC ecosystem in the country,” Sudhir Sethi, director of US-IVCA and vice-chairman & managing director of IDG Ventures India. |
| Last year, the VC firms had invested around $125 million during the same period, whereas in the first quarter of 2005 they had invested merely $37 million, Venture Intelligence CEO Arun Natarajan said. |
| Three companies, MindTree Consulting, FirstSource and Global Broadcast News, which had received VC funding prior to launching their initial public offerings, had tapped the market during the quarter. |
| MindTree Consulting raised $53 million through its IPO. The company had received its first round of funding from Walden International and Global Technology Ventures in January 2000. |
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“The quarter also witnessed successful VC exits via the M&A route in companies such as software testing company RelQ, receivables BPO firm Global Vantedge and FM channel Music Broadcast,” the study said. Source : Business Standard |