Venture capital can spur growth

Venture capital can spur growth
Vijay Times Network

Venture capital can be defined as fund used to support new or unusual undertakings; equity, risk or speculative investment capital. The fund is provided to new or existing firms which exhibit potential for aboveaverage growth.

If we see the success of IT industry in Silicon Valley (California - USA), the main contributor has been venture capital support. The ideas and innovations coming out of academic institutions (such as Stanford, Berkley) are backed by venture capital fund. SUN Microsystems (Stanford University Network) and Google are few such success stories.

Karnataka has setup one such fund called KITVEN (Karnataka IT Venture Capital).

On similar lines, the government of Karnataka must setup a North Karnataka Venture Capital Fund (NKVCF). The fund should go into companies with above-average growth and should set base in North Karnataka.

An initial fund to the tune of about Rs 25 crore can be setup and monitored professionally by industry, academic and government representatives.

The investment range could from Rs 50 lakh to Rs 150 lakh per company and the investment horizon would be 3 to 5 years. With this initiative, around 10 companies (may be existing companies or new ventures) will start their activities in the North Karnataka region. This initiative will bring definite attraction for small and medium-sized companies and also will develop entrepreneurial culture in the region (wherein universities and education institutes can transform their research into product or service to global markets).

Opportunities in North Karnataka

Santosh Huralikoppi,
CEO, NS Infotech Pvt Ltd
Santosh Huralikoppi is also CEO of Global E Network (a premier business partner of IBM). He is of the IT committee of Karnataka Chamber of Commer Industry. With offices in Michigan, Florida, New Y in USA as well as Bangalore and Hubli in India, hi will become the first IT/BPO company from North Ka to seek an Initial Public offer in Dec. The man power of organisation is likely to scale up to 500 by next