PRINT THIS PAGE 2006 update to structuring venture capital and other investments in India10/04/2006. Source: Fenwick & West LLP. Fred M Greguaras, Blake Stafford, and S R Gopalan
Many US and other foreign investors are evaluating alternatives for investments into software development, business process outsourcing, drug discovery and other services companies based in India, says Fred M Greguaras, Blake Stafford, and S R Gopalan of Fenwick & West. In the IT, life sciences and related sectors, the US and India venture capitalists still tend to make early stage investments into a US company which has a subsidiary in India for fulfillment. This structure is likely to change at least for services companies if the Bombay Stock Exchange continues to perform well because services companies usually have higher valuations in Indian than the US. Private equity investments and investments in infrastructure and business segments other than IT and biotech services companies tend to be direct investments into India. US venture capitalist are more willing to directly invest into later stage Indian companies regardless of the business segment because there is less risk. A number of mezzanine stage investments have been made directly into India when the IPO was near.
Click here to download the full article (pdf 101kb) You need Adobe Acrobat to read this document. If you do not have it, you can download it free from www.adobe.com/products/acrobat/readstep.html Fenwick & West LLP is a law firm providing comprehensive services to high technology clients of national and international prominence. The firm has over 300 attorneys and a network of correspondent firms in many major cities of the world. Fenwick & West has offices in Palo Alto California, San Francisco California, and Washington DC. For more information please visit www.fenwick.com
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