JumpStartUp gets off the ground

CIOL Bureau
New Update

BANGALORE: JumpStartUp Venture Fund, a private and professionally managed VC

fund, styled on the lines of Silicon Valley firms, has been launched in

Bangalore. It will provide seed or early stage capital for setting up start-ups

in technology enabled sectors, primarily in India.


With a corpus of $45 million, the US-based NRI promoted fund is backed by an

investor team comprising top professionals from the Silicon Valley and reputed

investment institutions from Asia, Europe and the US. Each investment will be,

on an average, no more than $1 million.

Among the angel investors are Exodus co-founder BV Jagadeesh, Cerent, Siara,

and StratumOne founder Jay Sethuram, Cisco vice-president and general manager

Jayshree Ullal, and venture capitalist Bill Draper.

The institutional investors include the Singapore-based Vertex Group, the

National Science and Technology Board, EDB Investments Pte. Ltd. (EDBI), which

is the investment arm of the Economic Development Board of Singapore, and the

California-based Silicon Valley Bank. Along with these, a number of well-known

individual investors from global infotech companies like Yahoo, Netscape, Sun,

Infospace, vJungle, Nortel, Intel, Junglee, and Amazon have also put in their

investment in the $45 million VC fund.


The holding pattern, which is an even percentage, has not been disclosed by

the three principal fund managers, viz. Kiran Nadakarni, Sanjay Anandaram and K

Ganapathy Subramanian. The three founders are, however, confident that the $45

million corpus will be sufficient to mentor 15-20 start-ups and will last 18-24

months. Announcing the launch, co-founder and managing director Kiran Nadkarni

said the primary focus of the fund would be on start-ups in the Internet space,

IT services, intellectual property, and click and mortar businesses.

"With an India-specific USP, the fund will look out for opportunities in

investing in B2B areas such as supply chain, application services providers (ASPs),

infomediation/exchange services and specialized vertical portals. The fund will

also back companies in the areas of eBusiness, CRM as well as in the emerging

areas of broadband and convergent technologies," Nadkarni said.

According to the second co-founder Sanjay Anandaram, JumpStartUp will be

targeting companies in the areas of semiconductor IP and system level tools,

utilities, embedded and higher level applications for information appliances as

intellectual property will be the emerging segment.

JumpStartUp funds are not confined to only IT whiz kids or techies. It will

partner with incubators, lawyers, accountants and recruiters to identify markets

for start-ups in India and key world markets.

The company has also roped in seasoned professionals from India and the US to

constitute its advisory panel. Among them are Yahoo! Everywhere vice-president

Mohan Vishwanath, Stanford University Associate Professor of Computer Science

Rajeev Motwani, Netscape-Sun Alliance vice-president and general manager Maneesh

Dhar, the Bangalore-based Microland group chairman and managing director Pradeep

Kar, and chairman and CEO Ajit Balakrishnan.