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October 17, 2005
Chennai, India
Arun Natarajan
CEO
Tel: +91-98410-10521
Email: arun@ventureintelligence.in
VCs invest
over $500-M in Indian-founded cos. in the US during July-Sept. 05
Chennai, India:
Hi-tech companies founded by Indians in the US
raised about US$500 million in venture capital/private equity financing during
the quarter ended September 2005, according to a new report from Venture
Intelligence India, a division of TSJ Media (http://www.ventureintelligence.in).
Out of 37 such companies which raised financing during the quarter, at least 17
companies closed rounds of $10 million or more. "The investments in
Indian-founded companies in the US during the latest quarter was higher than
that during the same period last year when 31 such companies had raised over
$380 million) as well as the April-June 2005 quarter (which had witnessed 33
investments totaling about $303 million)," said Arun Natarajan of Venture
Intelligence India.
The largest single investment during the latest quarter was the $150 million
raised by Harpinder Madan co-founded FiberTower Corp., a San Francisco, CA-based
provider of infrastructure and services for cellular networks.
The second largest investment during the period was the $45 million
recapitalization round raised by Rakesh Gupta and Anita Gupta, co-founded
TechBooks Inc., a Fairfax, VA-based provider of electronic content outsourcing
services.
The third largest investment during the latest quarter was the $40.6 million
raised by Prabhat K. Dubey, co-founder Force10 Networks, Inc., a Milpitas,
CA-based provider of 10 Gigabit Ethernet networking equipment.
M&A Deals
US-based networking equipment giant Cisco Systems gobbled up three
Indian-founded companies - Sheer Networks, NetSift and Nemo Systems - during the
July-September 2005 quarter for a total of about $165 million, according to the
Venture Intelligence India study.
Sunil Kishen co-founded Sheer Networks, a San Jose, CA-based developer of
intelligent network and service management products, was acquired by Cisco for
about $97 million in cash and $25 million in milestones-linked payments. George
Varghese and Sumeet Singh co-founded NetSift, Inc., a San Diego, CA-based
developer of content processing technology focused on high-speed networking and
security, was acquired for about $30 million in cash and options. Cisco also
acquired Sundar Iyer co-founded Nemo Systems, a Los Altos, CA-based provider of
network memory space technology, for $12.5 million in cash.
Among other Indian-founded companies that got acquired during the July-September
2005 quarter were Ash Ashutosh co-founded AppIQ (by HP) and Sunil S. Gaitonde,
Girish Juneja and John G. Chirapurath co-founded Sarvega (by Intel).
About Venture Intelligence India
Venture Intelligence India, a division of Chennai, India-based
TSJ Media Pvt. Ltd., is the leading source of information on private equity,
venture capital and M&A deals in India and Indian-founded companies worldwide.
For more information, please visit
www.ventureintelligence.in |
