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GIV chants P2P mantra, sets aside $15 million for Indian projects
Our eFe Bureau
Bangalore: P2P or path to profitability is the key for businesses in today's rationalised economy and the time frame for a business to get on this path is likely to reduce to a year-and-a-half, according to Global Internet Ventures (GIV) chairman Bill Melton. Addressing a select media session on the investor trends given the back drop of the US slowdown, Mr Melton said though capital was available in the market, investor purse strings were certainly likely to tighten. ``Valuations worldover have been drastically dipping and these are difficult times. VCs will be careful till the market settles down. Investments therefore will be slow,'' he said. Another important factor is that in the current scenario, exit options for the VCs was also closed for the next 12-24 months and could be planned only in a time frame of three to five years (in which time the business had to be on its feet), he added. GIV is one of the leading seed stage investors in the India and China region and has announced a total of $150 millionof investments over the next few years. The company has so far put $27 million on the table of which a little over $15 million has gone towards India and India-related investments. ``GIV is now going to go slow on investments which means a more careful examination of business plans. We will look only at investments that have a more immediate P2P,'' Mr Melton said. While more money was available in Asia as compared to the US markets given the better growth rates and demand for products and services in the Asia region, great care was required while considering investments, he added.According to market reports, of the total inflow of approximately $5 billion of VC funds in India, close to $2 billion has not yet been invested. The funds invested is likely to scale down given the threat of a drastic slowdown in the US markets, he said. Copyright © 2001 Indian Express Newspapers (Bombay) Ltd.
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