Sunday, May 20, 2007

Deal Syndication and Indian Venture Capital Industry

Venture cap firms use deal syndication -- a VC jargon for joint investment -- as a risk mitigation strategy while investing in early stage startups. Getting another VC firm to invest in early stage idea provides a strong second validation.

In India, deal sizes in early stage ventures have been small and venture equity firms have gone solo in most of the venture equity deals. Its high time firms look at syndication to get a strong second opinion about the idea they want to engage in.

Is Joint investment in iYogi by Canaan Partners & SVB Financial ($3.1M) an early sign of similar trend in Indian space?

2 comments:

Pinkou said...

Isn’t that the toughest part: giving up a cushy job, the security that comes with it to plunge into uncharted waters. As Indians aren’t we doubly conditioned to aim for security above all else? Or … is that mindset about to change?
Read more Entrepreneurship & Venture Capital Taking the Plunge

Pinkou said...

Professor V Chandrasekar says entrepreneurs are the same all over the world. He was speaking at the backdrop of TiE-ISB Connect 2007 in an interview wtih Contributing Editor Shobha Warrier.
Chandrasekar has taught at the Indian Institute of Management-Bangalore, Indian Institute of Science, University of Colorado, University of Denver, the University of Central Florida, Orlando, Queen Margaret College, Scotland, and ESSEC Business School at Cergy, France. He is the executive director of the Wadhwani Centre for Entrepreneurship Development at the Indian School of Business.
Read more How India can have more entrepreneurs?