The fund which is called LiquidVentures will be deployed in companies at the seed stage or as part of the first round of VC funding, according to Vivek Nathwani, director of Liquid Equity Capital. "We may also help these companies place shares in the first round of funding" says Nathwani, indicating that the company plans to take on a seed capital funding and investment banking function in the investee companies.

The investors currently include Riyaz Valani of Global Asset Capital, a Sillion Valley based incubator, Arjun Waney of the UK based Argent Fund and other individual investors which happen to comprise Industrialists and Bollywood stars. Nathwani and his partner Madhura Samarth who will be managing the fund have roped in high profile advisors who are currently with two New York based companies, Brean Murray and Chatsworth, both investment banks specializing in IT sector. "We are looking at investments at the seed stage which don't generally exceed 1.5 crore in a company. We want to grow these companies to a certain level until the first round of VC funding. We may in some cases also participate in this round" explains Nathwani.

Liquity Equity Capital was set up in 1998 by Nathwani and Samarth who have finance and investment banking backgrounds. He has been with the Chase Manhattan Bank with their media and telecom business while Samarth was part of Brean Murray in New York.