Vinit Bhansali wrote: [ on 06:31 AM 5/15/2007 ]
After all ... Many of the variables are similar .. It's not like different
issues/services/technologies are being used in different markets. Same GSM,
same J2ME, same .Net, same AJAX, same e-commerce. What is definitely
different is the value of each customer or each eyeball (a $20 book on
Amazon vs. a Rs. 200 book on FabMall (yeah, name changed, I know!) and a $3
adsense price for a US click vs. a Rs 5 value for an Indian click!)
So don't go around angel-investing the same 5 lakh dollars .. Rather invest
50 thousand.
Well, there a couple of things preventing that.
The primary reason is that, ironically enough VC firms are flush with
funds. Let me explain this with an example: A VC firm raises a fund.
It tries to raise, say, $100 million, but in today's environment, is
more likely to end up with more than that. The average VC firm has
3-5 people looking at investments. With each person being able to do
justice to say 5 investments at a time, that already means that the
average investment is AT LEAST $4 million.
Poof! There goes your early/seed stage deal.
Other reasons center around the risk appetite of VCs in India, but
that's a topic for another forum entirely.
It would be interesting to see what the various VCs here have to say. ;-)
Udhay
--
((Udhay Shankar N)) ((udhay @ pobox.com)) ((www.digeratus.com))
