I am not sure if this topic has been discussed before – pls direct me to the post or if people have newer insights, it would be great to discuss.

I am curious about opportunities to get funding in the $1M range for start-ups in India.

1. Most of the VCs in India seem to be interested only in deals over $2M. The average size seems to be $4M-5M. I believe this is a direct consequence of VCs raising funds over $100M. Even if you write $5M checks you still need to manage 20 companies! So cannot afford to make and then manage small investments. Also, with the valuations of many established companies falling to ground levels, with a $5-10M investment, VCs can now get a good stake at low risk. So more VCs seem to be doing PE type deals.
2. $1M is still a big amount in India. It cannot be raised from Friends, family and fools. Angel investors also balk at that number. Are there any professional investors who fund in this range? What are the options available for companies planning to raise in this range? (Of course, if there are no options available, we can always wait till we have greater investment needs)

regards,
Vamsi.

Reposted from http://vamsikv.wordpress.com

Vamsi

Vamsi Reddy Vutukuru is the CEO of Appin Security Group (http://www.appinlabs.com), a leading IT Security firm.

Earlier, Vamsi was the Global Business Manager for the TCS Life Sciences sector. He developed and launched new services for the Life Sciences sector and achieved significant year on year revenue growth.

Prior to this, Vamsi held various product management and strategy roles at IBM, New York. Before IBM, he co-founded XIRS - an XML-based data management products company. XIRS was later acquired by a healthcare IT firm.

Vamsi completed his B.Tech from Indian Institute of Technology, Delhi and M.S from University of Texas at Austin, both in Computer Science.

He is a Kauffman Fellows Program Finalist. He is an active member of TIE and was a Charter Member for TIE Hyderabad Chapter in 2006-2007.

Vamsi had run a full marathon (42km) at one point of time in his life and never fails to brag about it :-).

You can reach Vamsi at vamsikv AT yahoo DOT co DOT uk or at vamsikv.wordpress.com