US-based Peesh Venture Capital (PVC), which launched a $50-million fund early this week in India, has initiated the process to launch PVC-III, a micro-cap fund and PVC-IV a $100-million India-focused fund.
Peesh Chopra, managing director of Peesh Venture Capital, tells T E Narasimhan that India is a promising entrepreneurial landscape.
Edited excerpts:
What will be the focus of Fund-II?
PVC is looking at entrepreneurs with passion and it aims to build technology ventures in the Internet of Things (IoT) and mobile space in India, to break into the competitive global market and, in doing so, be part of India's transformation into an economic superpower.
The focus sectors include e-commerce, gaming, education, mobile apps, enterprise software, wearables, etc and the investment size could be between $100,000 and $5 million.
PVC-I was $10 million and PVC-II is $50 million. How did you manage to convince the investors as the general feeling is that limited partnerships (LPs) are shying away from India?
India has emerged as one of the most promising entrepreneurial landscapes globally.
In the past five years, the country has seen a rise of companies of global potential and acquisitions by global internet giants, and has produced companies such as Flipkart and Ola. LPs are bullish on India but also know there is a risk.
Our ability to give good returns (in PVC-I even 100x and 200x were reported) has helped increase the confidence of investors. Unlike many other funds, here 50 per cent of the funds is our own money (we come as general partners or Gps).
Unlike many other funds, our teams are located here. You cannot remote control and take decisions sitting in other parts of the world.
The core team, including me, of PVC has relocated to India. It will help take decisions faster, will be able to mentor the company, and can do quality deals.
Will Fund-II look beyond metros?
Companies can be created anywhere. So, we will certainly go beyond metros. In fact, one of the companies we are in talks with is from Ludhiana.
What is the way forward for PVC?
PVC-II deployment will take two to three years. We will deploy around 70 per cent of the fund and leave the remaining for follow-up investments in our portfolio companies over the next three to five years.
We've already initiated the process of raising PVC-III, a micro-cap fund supported by institutional players and notable Indian tech-investment-savvy angels.
It will look at making in-seed and super early-stage investments. Its focus will be on the same sectors as PVC-II. PVC-IV will be a $100-million India-focused fund.
