Financial Daily from THE HINDU group of publications
Friday, Jul 29, 2005
Financial Daily from THE HINDU group of publications Friday, Jul 29, 2005 |
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Info-Tech
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Venture Capital Silicon Valley VCs show interest in new projects Our Bureau
Mr B. Ramalinga Raju, Chairman of Satyam Computer (right), talking to a young IT entrepreneur at the TiE-ISB Connect 2005 in Hyderabad on Thursday. — P.V. Sivakumar
Hyderabad , July 28 VENTURE capital funds from the Silicon Valley, US, which are keen to zero in on innovative projects in India, have lined up at the Indian School of Business here to assess the potential of technology projects proposed by local entrepreneurs. Speaking at the inaugural session of the TiE (The Indus Entrepreneurs) and ISB Connect 2005, hosted today at ISB, the President of TiE, Hyderabad, Mr J.A. Chowdary, said the funding trends point towards a more focussed and sustained interest from the Silicon Valley VCs in the Indian market. Mr Chowdary said 56 proposals worth Rs 200 crore have been received and, of this, 14 shortlisted for further interaction with the VC community. Significantly, 36 proposals have been considered for the `elevator pitch', which will offer a short duration for entrepreneurs to attract VC funding. The venture fund representatives were from APIDC Ventures, iLabs, West Bridge Partners, Jump Start Up, Avigo Global, Blue Stream Ventures, Pace Setter Capital were among host of participants. The Chairman of Satyam Computer, Mr B. Ramalinga Raju, in his keynote address, said about 44 per cent of global IT outsourcing is represented by the Indian IT sector today and this can only get better as long as we continue to innovate and sustain the momentum. If the market capitalisation of large companies in India is compared with their counterparts in the US, it is clear that the Indian companies have been getting five times the valuation. As opposed to valuation of $50,000 in the US per employee, it is nearly five times in India, even though the revenue is one-fifth. This is because the world is recognising new ways of delivering value that a company can provide through services at affordable prices, Mr Raju explained. Referring to the Satyam organisation structure which has about 23,000 employees, Mr Raju said that though it is one organisational entity addressing business requirements, 1,500 value creating entities work as a team, provide services to 400 customers, handling 21,000 ongoing projects. This is through 700 life-cycle entities that offer 200 business support services panning human resources, finance, quality etc. The Chief Executive Officer of Sierra Atlantic, Mr Raju Reddy and CEO of Euclid, Mr Satish Andra, outlined the need to sustaining innovation and bringing in new breed of entrepreneurs.
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