Tim Draper Returns to India

Draper has backed Hotmail and Skype among other technology startups

‘Riskmaster’ Timothy C Draper visits, rather re-visits, India next month (October 10-12) and breezes through Mumbai and Bangalore. The last time the maverick venture capitalist was here, in late 2005, he set the ball rolling on Draper Fisher Jurvetson’s (DFJ) formal entry into India with the TiE Draper ‘India Venture Challenge’ that gave away $150,000 as prize money.

Subsequently, DFJ set up headquarters in Bangalore in September 2007 led by Mohanjit Jolly and Sateesh Andra (who works out of Hyderabad) — read more about DFJ’s India gameplan here. It has been investing from a $75 million India allocation (from its $600 million DFJ IX fund), which must be nearly over considering the pace at which DFJ has been closing deals — nine deals in 12-odd months! List below:

• Attero Recycling – eWaste management
• Canvera – online/offline digital photography
• Cleartrip – online travel services
• Gingersoft Media – SMS-based advertising
• MChek – mobile payment
• Pressmart – digitization services
• RS Livemedia – out-of-home advertising
• Reva Electric Car Co – electric vehicles
• Vegayan Systems – telecom networking solutions

So, does Draper Junior think India is ready for a solo fund now? He re-visits the country at an interesting time. The startup environment has never been so vibrant and rich — the dotcom era was anything but rich in content. Seasoned professionals are quitting safe, salaried jobs to start companies, Web 2.0 startup networking platforms created by students, entrepreneurs and professionals have taken centerstage in bringing new ideas to the fore, venture money is within reasonable reach and even seed funding has made small beginnings. Further, venture capitalists are already raising second funds for India — $100 million-plus seems to be the benchmark corpus — see earlier posts on Helion’s and Nexus’ funds.

I’d say, high time DFJ launched that $200 million India fund it had spoken about (dangled) back in 2005.

Photo: DFJ Website

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