Loaded future: VC funds worth $900 mn set to flow in
Budding entrepreneurs have something to cheer about. Funds worth $900 million are waiting to be deployed in the VC space over the next one year.
By Gaurie Mishra, TNN |
NEW DELHI: Budding entrepreneurs have something to cheer about. Funds worth $900 million are waiting to be deployed in the VC space over the next one year.
While this includes the six new funds that have been recently launched, it also includes $150 million that is expected to flow into India through the European Venture Capital Association (EVCA) and similar amounts through the American VC association.
In fact, Europe has recently passed a mandate whereby India and China have been identified as the top two destinations for all VC funding outside Europe.
“The projects that I have seen in India are very good and the quality is as good as those seen in America. At least 30 odd Indian companies should get $150 million as VC funding from Europe this year. We have passed a mandate for India and China as the countries where all VC funding outside Europe will flow into,” Javier Echarri, secretary general, European Venture Capital Association told ET.
Funding from Europe will flow only into tech companies and those that are either creating software in the oil and natural gas domain or for environment friendly projects, added Mr Echarri.
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Even with so much money flowing into the VC space, experts say there is no dearth of projects that will find the backing of VCs. “There is too much hype about the fact that there is excessive money in the VC space. Even with funds worth $900m, most VCs will find the right projects at reasonable valuations,” said Kanwaljit Singh, managing director and Investment advisor, Helion Venture. Besides Helion, which is a three-month-old VC fund with a corpus of $140m, some of the other funds that have allocated money for investing in the Indian VC landscape include Integra, Nexus, IDU, and e-planet.
E-planet has announced a second global fund, which will have allocations for India. A recent EvalueServe report on VC investment in India seems to be very bullish on the prospects and has estimated that as much as $4.4 billion will flow into India via VC funds over the next one year.
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