Venture Capital Funds in India

As of September 2006, there are no less than 50 major venture capital funds in India. These funds have seemingly come out of nowhere, attracted no doubt by the educational level and technological expertise of the Indian population. Here are some of the funds we presently know about:

Clearstone Venture Partners, with a $200 million fund, has opened an office under the name Clearstone Venture Advisors. There will be $2 to $5 million for early stage companies.

Matrix Partners has a $150 million fund targeting technology powered sectors, such as outsourcing, internet, mobile services, and IP-based products.

Helion Venture Partners has a $140 million fund.

BTS Investment Advisors, a Swiss private equity advisor, has an $80 million fund that will invest $1 million to $5 million in medium-sized companies looking to expand.

SBI Capital Markets Ltd. of Japan has teamed with Softbank Investment in a $100 million fund for India, with investments from $5 million to $10 million for BPO services, online businesses, and technology-enabled design and manufacturing.

These venture capital funds in India aim to create a critical mass of startups that promise to make India itself a real hotbed for investment.

India itself expects that thousands of entrepreneurs who migrated to Silicon Valley will return to India to grow their businesses there.