Average age of execs seeking VC funds goes up
Senior managers between 35 and 40 years from non-internet sectors are setting up new companies.
By Tanuja BM, TNN |
BANGALORE: Call it the effect of NRIs returning to their homeland and prepared to set up new companies, 2001 vintage entrepreneurs taking new guard or experienced corporate employees stepping out of their comfort zones. Venture capital (VC) firms are now seeing the average age of the people in non-internet areas approaching them for funding increasing to the late 30’s.
According to Sudhir Sethi, vice-chairman & MD, IDG Ventures India Advisors, “The average age of the entrepreneur from non-internet sectors approaching us for funding has gone up. It is now between 35-40 years.’’ In general, the tech sectors (internet, consumer wireless) still attract younger profiles whereas segments like software services, infrastructure, retail and related sectors are attracting the relatively older entrepreneurs.
Agreeing with this, NS Raghavan of Nadathur Holdings said, “Earlier we used to get people who approached us soon after their education. There were only a couple of people with experience who did come to us seeking funding for setting up ventures. Now, there are lot more experienced and older people seeking funding, especially people who have returned from overseas.’’ He added that there is now some reluctance to fund youngsters out of college since they don’t know too much about business.
So, why this change? Kanwaljit Singh, managing director of Helion Ventures opines, “One of the reasons I believe is that more senior managers are looking at turning entrepreneurs. This is prompted by a combination of overall market buoyancy, many success stories of first-time entrepreneurs in India in the past 5-7 years and also higher financial stability from the existing jobs so they have reasonable money in the bank to take the risk of entrepreneurship. The advent of more VCs and the ability for an experienced professional who has built `companies in the past’ to raise venture money is an added driver.’’
tanuja.badimala@timesgroup.com
Mohit Bhatnagar, an Operating Partner with Sequoia Capital India just says that it is a great time to be an entrepreneur. ``Opportunities in India are fantastic and venture capital is accessible. So frankly entrepreneurs of all ages are stepping onto the stage.’’ Currently, there are around 44 VC firms investing in India. About ten of them have own offices in the country and see anywhere between 100 to 400 business plans a year. 2006 saw VC investment of $506 million in India.
According to Sudhir Sethi, vice-chairman & MD, IDG Ventures India Advisors, “The average age of the entrepreneur from non-internet sectors approaching us for funding has gone up. It is now between 35-40 years.’’ In general, the tech sectors (internet, consumer wireless) still attract younger profiles whereas segments like software services, infrastructure, retail and related sectors are attracting the relatively older entrepreneurs.
Agreeing with this, NS Raghavan of Nadathur Holdings said, “Earlier we used to get people who approached us soon after their education. There were only a couple of people with experience who did come to us seeking funding for setting up ventures. Now, there are lot more experienced and older people seeking funding, especially people who have returned from overseas.’’ He added that there is now some reluctance to fund youngsters out of college since they don’t know too much about business.
So, why this change? Kanwaljit Singh, managing director of Helion Ventures opines, “One of the reasons I believe is that more senior managers are looking at turning entrepreneurs. This is prompted by a combination of overall market buoyancy, many success stories of first-time entrepreneurs in India in the past 5-7 years and also higher financial stability from the existing jobs so they have reasonable money in the bank to take the risk of entrepreneurship. The advent of more VCs and the ability for an experienced professional who has built `companies in the past’ to raise venture money is an added driver.’’
tanuja.badimala@timesgroup.com
Mohit Bhatnagar, an Operating Partner with Sequoia Capital India just says that it is a great time to be an entrepreneur. ``Opportunities in India are fantastic and venture capital is accessible. So frankly entrepreneurs of all ages are stepping onto the stage.’’ Currently, there are around 44 VC firms investing in India. About ten of them have own offices in the country and see anywhere between 100 to 400 business plans a year. 2006 saw VC investment of $506 million in India.
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