Anand Sridharan of Bessemer Venture Partners-India and Roshan D’Silva, Managing Partner of Middle East technology incubator One Nine Three (and co-founder of IIT-Bombay incubatee MyZus Infotech), have an interesting debate going on Anand’s blog on whether late-stage, non-tech investments will score over early stage tech focused investments.
India needs early stage capital today. The market is large and is ideal for an investor who can cherry pick the companies who he can back. I see no reason to sacrifice returns and join the crowd….I just feel there is more money to be made in the long run by building a very traditional Silicon Valley-ish Venture Capital firm investing in india.
Where is the actual investment opportunity, specific to the Indian market? Non-tech, growth capital opportunities outnumber tech, venture capital opportunities by an order of magnitude. Possibly even higher, if you apply a quality filter. Indian IP/tech startup scene is fast improving, but is still a few years away from critical mass.
So, what am I saying. There is a ‘sweet spot’ in not-so-large companies requiring expansion capital to scale up a proven business model in non-tech sectors. As of now, this spot is sweeter than early-stage tech.
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