MUMBAI, FEB 5: With many sectors like infotech, media and biotech booming, venture capital inflows into the country are likely to grow by 120 per cent to touch Rs 3,200 crore during the fiscal 2000-01. Venture capital funds (VCFs) have already injected Rs 1,400 crore in 1999, recording an impressive surge of more than 100 per cent over the previous year.Going by these calculations, India would be attracting annual investments of $10 billion by 2008 to become one of the leading locations for the creation of technology ventures in the world, according to a report by the National Association for Software and Service Companies (Nasscom).Nasscom president Dewang Mehta told mediapersons that VCF investments in high-tech companies have grown by about 2,000 per cent to Rs 1,400 crore in 1999 from Rs 70 crore in 1996. In 1999, as many as 11 new VCFs registered with the Securities Exchange Board of India (Sebi), taking the total number to 19.``Special VCF clinics are being organised at Nasscom 2000 whereadvice is provided to entrepreneurs by leading venture capitalists, including TiE president Kanwal Rekhi. We also had discussions on key areas relevant to Indian entrepreneurship like `challenges for spider (dotcom) companies' in association with industry captains,'' he added.Mehta said India had witnessed all venture-backed initial public offerings (IPOs) earning a 44.6 per cent return over a typical five-year holding period after listing compared to about 22.5 per cent for non-venture backed IPOs. Nasscom and McKinsey are currently in the process of implementing a strategy to put the country into the global map of technological ventures in the world.According to Mehta, India should establish as a global centre of excellence in segments including wrapper products, e-businesses and asynchronous IT-enabled services. The Nasscom 2000 event would assist start-ups create value-added IT and IT-enabled services, software products and e-businesses in the coming years.However, Nasscom is expectinginitiatives from the Government to encourage growth of VCFs. ``Nasscom is expecting concrete steps from the Government including the creation of funds similar to that Israel's Yozma, a provision of exit options for Indian entrepreneurs allowing them to benefit from their success,'' Dewang Mehta said.
