Indian start-ups that use the Internet and mobile phones to sell their products and services are attracting large funds from venture capitalists, raising the spectre of a bubble similar to the one that destroyed the budding Internet commerce industry at the turn of the millennium.
In 2006, venture capitalists (VCs) struck 30 deals worth a total of $200 million; money they believe would multiply as Internet and mobile phones proliferate in the world's second fastest growing major economy.
In comparison, VCs invested a total of only $36 million in 7 deals in 2005. The trend has continued into 2007 with five deals worth $13 million already sealed in the first four months in the mobile and Internet sector alone, according to Venture Intelligence, a Chennai-based research service focussed on private equity and venture capital activity.
Read more in The Times of India article.
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