| If you are an entrepreneur and apprehensive that the global market meltdown will strain your fund-raising plans, fear not. India-focused private equity and venture capital funds raised $7 billion (Rs 27,958 crore) in 2007, excluding real estate, last year. |
| They had garnered a similar amount in the corresponding previous year, according to data from Venture Intelligence, a venture capital research company. |
| Some noted VCs raised funds last year. Sequoia Capital notched up $300 million, Sandalwood Capital ($350 million), Matrix India Partners ($300 million), Helion Ventures ($210 million), VenturEast ($150 million) and Nexus India Capital ($100 million). |
| A partner at a VC company, said, “Wish there was a slowdown! We are screening so many proposals every day. The industry is rocking. Entrepreneurs with sound business plans will not have any problems in raising funds, even in these dull market conditions.” |
| While VCs have become stronger, private equity funds have not been far behind. Funds such as Frontline Strategy, Askar Capital and Kotak Private Equity were active in tying up funds last year. Kotak PE closed a $440 million fund in three months. |
| Nitin Deshmukh, CEO – Kotak Private Equity Group, said, “This is the best time to sit on investible cash. The Indian economy has been growing at a healthy rate in the last couple of years and it’s continued growth is expected to throw up several opportunities in the mid-market space in high growth segments of global manufacturing, domestic consumption and infrastructure led services. The recent capital market dynamics are also expected to help moderate investment valuations” |
| Limited Partners (institutions which invest in VC/PE funds) such as International Finance Corporation, Argonaut Private Equity, Thomas Weisel and an increasing number of institutions and Family Offices from the West Asian region have been fuelling the fund-raising plans, besides conventional Limited Partners including the Yale and Stanford universities, the US-based pension funds and endowments. |
Source: Business Standard