During 1990-2000, when the VC firm invested $400 million, it had reaped a return of $9 billion.
MATRIX Partners, the US-based venture capital firm, has opened an office in Bangalore as part of its strategy to tap the potential of star-up Indian companies planning to exploit the global markets and also to extend its backing to the US companies having their establishments in India.
The venture capital firm hopes to go for its next round of fund raising in 2006, while having treated the market cautiously with a high rate successful funding, said Mr Timothy A Barrows, Managing Partner.
Addressing a press conference here, Mr Barrows said Matrix had last raised $500 million in 2002 of which, only 40 per cent were invested.
He said during 1990-2000 when the company invested $400 million, it had reaped a return of $9 billion. This underlined the company's experience in understanding the companies' strength and the market, Mr Barrows said. Out of about 800 companies, only 10 to 15 had shown extraordinary returns as the US high cost and low capital efficiency affected smooth growth of both product and services companies. This is the reason, Matrix would tread cautiously in India by first backing the US companies with their interest here before tapping the Indian companies.
He, however, was optimistic that with strong economic growth Indian start-up would be testing their mettle by first consolidating in the domestic market and later venturing into international market.