500 startups has put a hold on plans for “India Fund”Bengaluru, India | Red Newswire | Jan 11, 2016 Last Updated at 9:00 AM IST.
The Venture Firms of Bengaluru is reconsidering its decision to launch India Fund as informed by 3 people close to the development. This has put a question mark to the expectations of the startups hoping to get more funds.
The director of investor relations at 500 Startups, Aerin Lim said that the firm was in process of raising $10-20 million to launch ‘Startupwallah’ – a launch vehicle for the country’s startup.
One of the persons aware about the matter said, “Their overall strategy is changing given that they have struggled to raise money for their latest global fund. So the conversations around an India fund has slowed down considerably-—practically negligible over the past 6-12 months."
However, the company has refused to comment. In 2015, around 1,100 startups have been funded by Venture Capital firms.
Niren Shah of Norwest Venture Partners India said, "There continues to be a lot of interest in India and now is a good time for (limited partners, or investors in venture capital funds) to double down.”
Source: ET Bureau