Technology funding to pick up
Loading ...The technology funding space is getting active once again with the macroeconomic picture looking brighter. The total capital raised in private equity (PE) or venture capital (VC) funds for India is at $2.5 billion in 2009 and will potentially balloon to $4bn in 2010 – the same amount raised in 2008.
“There is a revival in investor sentiments,” pointed out Sudhir Sethi, CMD of IDG Ventures.
A lot of action is also due in the number of venture backed exits through M&As in the technology space. “The first half of 2009 has seen 25 exits already equaling the number in 2008. For the full year, the number can be higher than 35,” he predicts.
Sethi was attending Nasscom’s Product Conclave in the city on Tuesday.
Budding Indian entrepreneurs and entrepreneurs-in-waiting were treated to a full day of advice, meaty tips, and prospects for growth from VCs, evangelists, business mentors, analysts, and successful product company heads during the event.
Industry experts had a key message: focus on the domestic market.
“10 years ago, the IT sector had aspirations to build products that are now possible as the ecosystem is more conducive. Funding is available, people are volunteering to mentor, and we don’t have to go out in search of markets for our products. We are now market makers. The phenomenal success of the telecom industry in India is an example of market making,” president of Nasscom Som Mittal said.
Pointing out that the $2.3 bn product market in India is all set to touch $11.5 bn by 2015, he said, last year there were only 400 product companies as against 600 today. “The definition of products and services are getting more diffused as customers who buy products are also demanding services to support it,” he added. Nasscom is working on putting up a searchable product directory on its website to facilitate interactions between potential customers and product companies.
Chairperson of the body’s Product Forum Sharad Sharma said India can dominate the world in mobile solutions for rural markets.
Media Coverge in AShain Article, Article by Sangeetha Chengappa
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