Software trio sets up technology fund

One more VC fund interested in tech cos. Regards.

- Dilip.

Source: Economic Times, Feb 16, 2006

Software trio sets up technology fund
AMANPREET SINGH

TIMES NEWS NETWORK [ THURSDAY, FEBRUARY 16, 2006 12:19:15 AM]

NEW DELHI: Kanwaljit Singh, ex-group director of Carlyle, Ashish Gupta, founder of Junglee Corporation and Sanjeev Agarwal promoter, founder of Daksh and now CEO of IBM Daksh are all joining hands to set up a tech-focused fund — Helion Venture Partners. The fund will be headed by Kanwaljit Singh, who focused on Asian venture opportunities in the IT-related sphere in Carlyle. Ashish Gupta, also a venture partner in Wood Side Fund and founder of Junglee Corporation — a data integration software company, will be a full-time partner in the Helion Fund. Ashish Gupta was also an advisor and investor in erstwhile Daksh.

According to sources in the industry, Gupta's brother-in-law Sanjeev Agarwal will join the team at Helion as an investor. Agarwal pocketed a windfall in 2004 when IBM bought Daksh for close to 700 crore in 2004.

What remains to be seen, however, is whether Agarwal will remain with IBM Daksh as its CEO or join Helion as one of its full-time partners. Helion, as is evident from the expertise of its partners, is clearly looking at an "India focused tech-powered fund."

With enough belief in the Indian market and its potential for entrepreneurship, Helion will be looking at investing up to $5 million as angel funding in a company present in the Indian domestic IT and the Internet space, with special focus on outsourcing.

When contacted by ET, Kanwaljit Singh, reused to comment on the development.

The entry of Helion Venture Partners appears to be a part of a larger trend of early stage funding, say analysts. Technology is clearly the buzzword in the venture capital circles and new entrants are looking at targeting tech-powered startups for early and mid-stage funding, the add.

Helion is looking at institutional investors in the US. Singh and his partners reportedly have a commitment from Sutter Hill Ventures (SHV) for $125 million. SHV, a US-based venture capital company focuses on assisting entrepreneurs in technology-based start-ups.