I T related industries were most preferred, with 94% of VCs voting for them. These were followed by internet related (74%), telecom & cable networks (61%), media/tv/film/radio (55%), and biotechnology (55%). |
|
This was in keeping with the general trend of VCs investing a substantial portion of their funds in high-tech ventures. During 1986-97, around 50% of USA's VC disbursements were to the electronics and information technology industry. During 2000, technology based companies (including internet related businesses) accounted for more than 95% of USA based investments. Higher potential for growth seems expected by VCs in the above mentioned industry groups, probably because of higher chances of developing patent protected products or of finding niche markets. Entrepreneurs, therefore, have a better chance of obtaining VC funding if they happen to have core competence in the above mentioned areas. |
|
More than half the VCs felt that they either they had no specific preference or that they could invest anywhere in India, based on merits of the case. However, South India
(23.1%) and West India (20.5%) were the preferred destinations for others. Better infra-structure, large pool of infotech talent, more professional and business like approach to work, and responsive State Governments
could be the underlying reasons. Companies based in these areas stand a better chance of being picked up by VCs for investment.VC Practices Survey
 |
 |
 |
 |
 |
 |
 |
 |
|
