VCs shy away from funding simputers
by Imran Qureshi, Indo-Asian News Service
Bangalore, Sep 11 (IANS) Venture capitalists (VCs) are fighting shy of
funding what appears to be India's most promising invention, the
hand-held simputer, that can truly take the computer revolution to the
masses.
Four researchers of the Indian Institute of Science (IISc), who invented
the simple device, more powerful than the palm top, along with three
technologists of Encore Software, admit they have been struggling for
funds.
The biggest advantage of the device is that it could sell for as little
as Rs. 9,000, or less than $200, giving the less affluent a chance to
plug into the IT revolution.
The question of VCs came up during a press conference PicoPeta Simputers
-- the company set up by the IISc and the inventors -- called to
announce the first simputer pilot project in Chhatisgarh state, in
association with WorldSpace Radio and South Asia Foundation, a voluntary
organisation.
The scientists said they are "looking for strategic investments of
$300,000-500,000 to ignite the simputer revolution."
Why not VCs was the natural question. "The VCs do not seem interested.
They are holding on tight to their funds," said Ramesh Hariharan, the
youngest in the team of scientists.
PicoPeta Simputers began with some "modest investment from IISc and the
four of us," said Swami Manohar, scientist and the acting chief
executive officer. Two non-resident Indians (NRIs) living in Singapore
came forward to offer some investment.
"Anantha Nageswaran of Credit Suisse came in as a true angel, seeking
PicoPeta founders out based on a news report. His timely investment
enabled PicoPeta to get off the ground in May. The more recent second
investment by Sandeep Malik, an equity partner in Marakon Associates,
has enabled PicoPeta to stabilise," the fledgling company said.
PicoPeta Simputers develops the technology and the tools for the
simputer that is now being manufactured under contract by state-owned
Bharat Electronics for the pilot education project in Chhatisgarh's
Bastar region.
"We are yet to decide when we will take the licensing fee of $25,000
from Bharat Electronics as per the rules of the Simputer Trust and the
other charges for developing the tools," said Vishwanathan Vinay, acting
chief technology officer of PicoPeta Simputers.
The company has already held preliminary discussions with IT majors like
Wipro and TCS, among others. It has also received a number of enquiries
from the U.S., Europe, the Middle East and South America. But BE was
most proactive on manufacturing the simputer.
--Indo-Asian News Service
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