Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : India Coffee House -- Ignore unavailable to you. Want to Upgrade?

To: Mohan Marette who wrote (6323)	9/3/1999 8:10:00 PM
From: Mohan Marette	Respond to of 12475

US firm steps in to groom Indian Net start-ups Abhijit Basu (Financial Express) Mumbai In an attempt to provide financial support and development fillip to Internet-based software start-ups in India, acquavit, a US-based technology incubation firm, has outlined an investment of $20 million in the country. Stepping up from the norm of venture capital funding prevalent in the country, acquavit is expected to provide the much-needed hand-holding for start-ups in the areas of development, marketing and management. acquavit has been co-founded by Neeraj Bhargava and Sandeep Singhal, former employees of leading international management consultants McKinsey & Company, along with Rajesh Jog, founder of Mumbai- based investment advisory services firm, Gateway Capital. As an incubation firm, acquavit will further receive funding from venture capital firms in the US, other incubation partners, and large private equity funds in Silicon Valley. Besides, acquavit is in the process of joining hands with international law firms, recruitment agencies and image management firms. Neeraj Bhargava, Chief Executive Officer, acquavit, said these companies would be the vital link to acquavit's Indian partnersm, to Silicon Valley. The company has already identified four firms in the country for investment. Although Bhargava refused to divulge names, he said one of these firms is involved in creation of industry-specific portals, while others are in the electronic retailing and marketing business. It is understood that acquavit would pump in around $1 million per company and acquire up to 49 percent stake in each company. To start with, the company has identified four areas of focus for investment-e-commerce, industry- specific content development, IT integration, and Internet-related software development. Bhargava clarified that the firm would look exclusively at start-up companies. Explaining the concept of incubation, Bhargava said the company will provide services like legal guidance, recruitment, and branding to start-ups, in addition to capital investment. "Incubation is an industry in its own right. It is a very popular concept in the US, and we are now trying to popularize it in India," he said. In order to manage its India operations, the company will set up two divisions, for funding and providing services. While the funding division is in the process of being set up, the service division is expected to come up in the last quarter of this year. The services arm is expected to offer a lot of back-end development work to the Indian firms as acquavit will sub-contract a lot of its development work to the Indian firms. "The firms that we invest in would be our partners too and we would jointly address the overseas market. As a result, they stand to gain from a lot of offshore development and we would have access to their expertise in various areas," said Bhargava. In order to strengthen its activities in the country, acquavit is also looking at adding more partners and business associates. Bhargava said the firm is looking at adding one more partner in addition to the present three, and eight business associates, four each in India and the US. Apart from India, the company is eyeing the Asia-Pacific marketplace for similar investments in the region. Bhargava said Singapore would be a lucrative market to tap after India and the company plans to invest there next year.