When it comes to new age tech segments — machine learning, IoT, augmented/virtual reality, India still has very few startups. To boost innovation and encourage entrepreneurs working in these domains, a new startup fund called Ideaspring Capital worth 125 crores has been set up by a clutch of famed investors and businessmen, reports ET.
These investors include Amit and Arihant Patni of Patni Computers and angel investors Naganand Doraswamy and Prashant Desphande who have joined hands with TV Mohandas Pai, Rajan Pai of Aarin Capital and Sasken Technologies CMD Rajiv Mody.
The fund will focus on new-age tech companies working in areas such as Machine Learning and Deep Learning, Computer Vision and Image Processing, Big Data Analytics, Internet of things, Augmented and Virtual Reality, Internet Security,etc.
We will invest in 4-5 firms annually. Initially, we will invest up to Rs 3 crore in the seed round that would last them for 12-18 months. Post our involvement with the startup, they should be able to go to pre-series A in about 18 months. We are looking to pump in up to Rs 5 crore in the pre-series A round.
said Deshpande on the investment strategy of Ideaspring Capital.
Ideaspring has set up 50 crores for seed stage investing in early stage firms and another 50 crores for pre-series A and Series A funding rounds.
The fund will not only provide capital but will also provide operational experience, management best-practices, and sales networking to new startups.
It will launch a Startup Assist program to help Indian entrepreneurs reach global markets through contacts with customers in the US and launch their products in right market.
The idea behind backing such tech based product startups is to assist them in identifying a right strategy for placing their products and scale up their offerings.
There might be a lot of good entrepreneurs here, but they might be building products even without having the right access to those markets that they are building for. Indian entrepreneurs have to think global from day one,
said Arihant Patni.
Ideaspring will also connect the startups with growth capital VCs and leading investment banks in India and US for raising future rounds of capital.