Startupcentral-Proto.in RoundTable Part I: Are Venture Capitalists Backing Enough Startups?

Are Indian venture capitalists investing in enough startups? Most startups I’ve met certainly don’t think so. But are there enough venture fundable startups available to investors? Many venture capitalists also don’t think so. Clearly, there are gaping holes in the startup funding eco-system that need to be plugged. And it is still a tough ask.

At the recently concluded sixth edition of Proto.in, the country’s pioneering startup showcase forum, Startupcentral collaborated with Proto.in to bring together a few venture capitalists to talk about some of the issues around investing in India. It turned out to be an interesting and fairly candid 45-minute round table on pertinent issues including how angel networks can be mobilised better, why venture capitalists mix up seed investments with growth-type deals and whether technology product companies have a future. Last, and most exciting, our panelists picked their favourite startups at Proto.in 6.

Watch Part I of the round table here:

Details

• Indian Venture Capital: Staying Alive
• Startupcentral-Proto.in Venture Capital RoundTable
• Pune, July 25, 2009
• Panelists: Alok Mittal, Canaan Partners; Sateesh Andra, DFJ; Ravi Narayan, Mentor Partners; Rajesh Srivathsa, Ojas Ventures; Rahul Chowdhri, Helion Venture Partners; Shailendra Singh, Sequoia Capital India; Sasidhar Nandigam, GVFL.
• Moderator: Snigdha Sengupta

Panelist Profiles:

Alok Mittal, General Partner, Canaan Partners

Mittal co-founded jobs portal Jobahead, which was acquired by Monster, prior to becoming an investor. His investing career started with Baring Private Equity Partners India where he led the technology practice. He is also a founding member of Indian Angel Network. In 2006 he was signed up by Canaan to lead the firm’s investments here. His investments include Bharatmatrimony, Cellcast and Chakpak Media. Canaan invests in the technology and healthcare sectors and has $3 billion under management globally. In India it focuses on consumer Internet and digital media, mobile, enterprise and managed services. It invests between $2 million and $5 million per company over a number of years and can start with as little as $100,000.

Sateesh Andra, Venture Partner, Draper Fisher Jurvetson (DFJ)

Andra is a serial entrepreneur who turned venture capitalist with DFJ in 2007. Metrikus and Euclid Software, the two US-based IT startups he co-founded, were acquired by Persistent Systems and e4e respectively. His investments through DFJ include mGinger and Pressmart and he is an observer on the Cleartrip board. Andra stays closely involved with young entrepreneurs through the TiE-ISB Connect startup networking forum. DFJ invests largely in technology companies and manages over $6 billion in capital globally alongside its affiliate network of funds. In India, the firm invests in early and mid-stage companies in cleantech, mobile, information technology and consumer services.

Ravi Narayan, Managing Director, Mentor Partners

Narayan founded startups American Systems International and Nextone Communications and worked in various operating roles in the telecom and information technology industry before Mentor Partners. The firm provides venture capital advisory services to startups and has plans to raise its own $30-50 million fund. Narayan is an advisor to Proto.in and also runs MentorSquare, an online mentoring programme that helps startups and small enterprises access resources and know-how on business best practices, customers and efficiencies.

Rajesh Srivathsa, Managing Partner, Ojas Ventures

Srivathsa has extensive experience working with startups (Emuzed) and leading technology companies (Aricent, Lucent) in the US and has several technology patents to his credit. Ojas invests in early stage technology businesses from a $35 million fund and has invested in startups such as Tyfone, Ziva and Mango Technologies. The firm’s  thesis is to seed fund young startups and help them to become capable of raising the next round of venture capital.

Rahul  Chowdhri, Vice President, Helion Venture Partners

Chowdhri has worked with Microsoft India, marketRx and i2 Technologies in various roles including developing business strategy and software product management. He turned to venture capital with Helion in 2007. Helion is a $350 million India-focused venture capital investor which invests in technology and consumer services businesses. It invests upto $10 million across the life of a company and is stage independent, starting from seed to later stage deals. Its portfolio of current investments includes Amba Research, Brand Calculus and Jigrahak Mobility.

Shailendra Singh, Principal, Sequoia Capital India

Singh co-founded and led outsourcing startup Jalva Media and worked as a consultant at Bain & Co before joining Sequoia in 2006. He focuses on investments in consumer, healthcare, Internet and outsourcing and his investments include GlobalLogic, Guruji and JustDial. Sequoia manages nearly $2 billion in capital in India and invests across stages and sectors.

Sasidhar Nandigam, Senior Associate, GVFL

Nandigam focuses on lifesciences, clean tech, renewable energy and biotech investments at GVFL. Apart from investing, he also actively works with investee companies in operational areas such as marketing and managing financials. GVFL has raised six technology-focused venture capital funds worth Rs 244 crore since 1990. It is currently raising a Rs 250 crore SME Technology Venture Fund. It portfolio of investments includes Icenet, Neilsoft and Pegasus Semiconductors.

Stay tuned for Defining Venture Fundable Startups and Proto.in VC Favourites in parts II and III.