A new technology venture capital fund

By Our Special Correspondent

CHENNAI, MAY 2. A new type of venture capital fund - Ventureast- TeNet Fund - for funding new technology ventures at the seed- stage was launched here on May 1 by Ventureast Fund Advisors India. It is claimed that this is the first venture fund in India with technology association from an educational and research institution - the TeNet Group of IIT, Chennai. Mr. Ray Stata, Chairman of Analog Devices, U.S., will be the lead investor.

The fund will have an initial corpus of $15 million with Mr. Ray Stata committing $10 million. It will invest $2.5 to $10 million in early stage businesses/technologies emanating from IIT, Chennai and from other research institutions and companies that can further benefit from the support of IIT, Chennai.

Talking to presspersons, Mr. Sarat Naru, co-founder of Ventureast, said, ``The Fund will pay particular attention to the technologies that can create dramatic efficiencies and productivity in the larger segment of the population that is on the other side of the digital divide.''

There is also a tremendous economic potential in that strategy. However, venture capital funds and corporates worldwide have neglected the segment because of the easier pickings in the economically advantaged segment. Another advantage claimed for Ventureast-TeNet Fund is that unlike overseas funds that lack knowledge of the local market they are particularly well placed as it is backed by a combination of technology skills of IIT, Chennai and Indian/U.S. venture capital experience.

Ventureast is an old hand in venture capital in India since 1995. Its five partners combine a strong track record in venture capital and business building in the U.S. and India with a focus on early stage business. The partners are Mr. Subash Kolluru, Mr. Siva Kumar, Mr. Raghu Mendu (all from the U.S.), Mr. Shekhar K. Reddy and Mr. Sarath Naru (India). Four of them have engineering education from IIT, Chennai.

Prof. Ashok Jhunjhunwala, now head of the Department of Electrical Engineering, IIT, Chennai, also heads the Telecommunications and Computer Networks group at the institute (TeNet). The group works with industry in the development of telecommunications and computer network systems. He is widely acknowledged for his technical expertise.

The TeNet group has been in the forefront of developing new enterprises which are into the latest technology. The TeNet group of IIT, Chennai, has besides Prof. Jhunjhunwala other faculty members who are specialists in various disciplines.

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