The Hindu Business Line : Clearstone opens Mumbai office

( From right) Mr Rahul Khanna, Director, Clearstone Venture Advisors; Mr Sumant Mandal, Managing Director, Clearstone Venture Partners; and Mr. Rajesh Jain, Entrepreneur, Netcore Solutions Pvt Ltd, at a press conference in Mumbai on Thursday. - Shashi Ashiwal

Mumbai , Aug 17

Clearstone Venture Partners, an early stage venture capital firm, plans to invest $30-50 million in Indian companies every year. The firm opened its advisory office in Mumbai today called Clearstone Venture Advisors, company officials told newspersons.

The firm has raised $650 million of investment through three different funds. It has made its first investment in India ($5-million) in Billdesk, a payment services provider.

Clearstone will focus its Indian investments on high-growth consumption sectors including telecom, media, entertainment and financial services. Going forward, it also plans to invest in the healthcare and education sectors.

The firm has raised money mainly through large institutional investors such as Universities, fund of funds, and the US State of California, among others. It has a long-term investment horizon of 10 years.

The firm targets visionary entrepreneurs requiring help in building globally valuable companies through early stage funding in the range of $2-5 million.

"However, if a company requires a larger amount or a meagre amount of less than $1 million, we will provide it depending on the company's credentials," said Mr Sumant Mandal, Managing Director.

"While investing in companies at early stages, we mean investing in companies which are early in terms of creating a revolution in their market. We try to bring institutional comfort to the emerging businesses and build strong and extensive relationships," said Mr Rahul Khanna, Director.

"India's emerging middle-class, booming economy, and innovation make it the most exciting place to build new companies today," said Mr Mandal.

The firm has invested in over a dozen US-based companies with back-end operations in India.

It has invested in some 30 active portfolio companies and is the lead investor, owning between 15-40 per cent, in each company.

In the past, the firm has invested in companies such as eToys, Overture, Paypal, MP3.com, and others.