Angel & VCs funding new ideas

Addressing ISA Vision Summit 2011 session on Technology Innovation — An Investors Viewpoint he said over 30 per cent of these were product companies and these were in telecom, energy, engineering, medial devices, BR &analytics, security and digital consumer domains.

For these to happen, he claimed, domestic market and angel funding were key factors in the emergence of innovation.  Citing examples of companies IDG has funded, he said, angel and venture capital investments in technology was increasing multifold.

While, venture (technology) investments between 2004-09 were $2.5 billion, he said technology venture investments from 2010-15 were expected to scale to $7.5 b and angel investments were also on the upswing. Among the key sectors where investors are pumping in their money include healthcare, medical devices, education, software products (enterprise, security, digital consumer, telecom, mobile, energy, aerospace, automotive et al.

He said, between 2004-09, his company had backed exits of nearly 114 ventures and that the average holding period was 5.5 years, while 2/3rds of these exists were M&A.

Observing that technology is no longer confined to and just IT, he said, it has become pervasive to cover several domains under its umbrella, exhorting entrepreneurs that it was great time to start an innovative company. Noting that Indian products can also be taken globally, Sethi said, even exits were strong given the vibrancy of the domestic IPO market from where capital could be tapped. In a nutshell, Sethi said it was time to forget myths and accept the realty of a happening technology and innovation revolution in the country.