Anil Ambani's VC arm to invest up to $150-mn in FY 12

MUMBAI: Anil Ambani Group's venture capital arm, Reliance Venture Asset Management (RVAM), has drawn up plans to invest up to $150-million in around a dozen companies in FY 12, a top company official said.

"We are looking to invest $100-150 million in 6- 12-deals next fiscal," the sector agnostic fund's Chief Executive, Harshal Shah, said.

The amount allocated for investments is broadly the same as the ongoing FY 11, Shah said, stressing that investing in innovative start-ups is very relevant even today.

Education, infrastructure ancillaries, healthcare and aerospace and defence are the sectors which the fund is bullish on, Shah said.

RVAM, which typically invests up to $15-million per company, is fully sponsored by the Anil Ambani group and currently has over 18 investments in Indian and American start-ups.

Shah said the firm is looking at innovative companies in the defence sector, where private sector participation is set to increase, while the prospect of higher spends (up to $100-billion) in airport infrastructure is making it interested in aerospace.

Considering the demographics, healthcare and education continue being very alluring in India, Shah said.

When asked if VC investing in India is losing out to investing in public equity, Shah replied in the negative saying only newer ventures have the power to create employment and drive the economy.

"This is the ideal time for VC investing...we are passing through our own baby-boomer era," he said.