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Venture capital in India

The venture capital industry in India has grown dramatically in the last few years, even boasting its own ‘Silicon Valley' in the form of Bangalore. However, VCs and their investors recently lost a great deal of money when India's stock markets crashed. Michael J Ybarra of Upside argues that the industry is now characterised by massive risk-taking but that there are opportunities for some very substantial returns.

Five years ago, few venture capitalists had heard of Bangalore. And yet last year over $1bn was invested by VCs in India, a quarter of which went to this technology cluster. The outlook for the future is also positive with the Indian Venture Capital Association expecting risk capital to hit $2bn this year and the National Association of Software and Service Companies predicts that this figure will reach $10bn by the year 2008.

Copyright © 2002 Upside

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Michael J Ybarra is a journalist with Upside.

UMAC Inc. is dedicated to providing its customers with high quality, insightful media products that uniquely position the company as a leader in the information technology field. Upside covers key business issues and trends affecting high-tech companies in computing, software, telecommunications, and e-commerce. In addition to its flagship magazine, Upside has created a number of products in different media, including an Internet site, books, conferences and television. The company has also developed a creative, rewarding workplace for its growing workforce of bright, dedicated employees. For more information please visit www.upside.com