The Hindu Business Line : NovaStar to invest up to Rs 12 cr in each venture

NOVASTAR Capital, a two-month old venture capital fund, plans to invest Rs 8 crore to12 crore in companies with revenue of about Rs 5 crore - to Rs 10 crore to help them scale up their business, according to the Managing Director, Mr Vijay Angadi.

NovaStar has a few deals on the table and the company is likely to announce such an investment in a "couple of weeks", Mr Angadi said.

The venture fund plans to lock its investments for five years to grow the business significantly before seeking an exit route. NovaStar will look at companies with a proven business model and a steady revenue stream, which seek booster capital to grow the business to the next level, he said.

"We will look at different companies across different sectors that promise growth... our capital infusion will help the companies gain scale," Mr Angadi said.

Mr Angadi, a veteran of the Indian venture capital industry, was the managing director of ICF Ventures, which had a corpus of $17 million.

"We have invested close to that amount," he said, adding, "We have not lost a single company."

ICF Venture funds have been used significantly as seed capital to several entities like jewellery-maker Oyzterbay, business-to-business procurement enabler Matexnet and biotech firm Gangagen.

Venture capital and private equity firms invested over $180 million in 14 local companies in the first quarter ending June in the current fiscal. The investments were higher in the last quarter compared to deals worth $35 million in the same period a year ago, according to data from TSJ Media, that tracks venture capital, mergers and acquisitions.