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JumpStartUp invests $500,000 in Jareva Technologies

Fakir Chand in Bangalore

JumpStartUp Venture Fund, a $45 million fund, which focuses on early stage funding of start-ups, has made a strategic $500,000 investment in Jareva Technologies, Inc., the US-based provider of information technology automation software, which enables enterprises to scale their businesses.

Recently, Jareva released world's first automated data center operating environment to help businesses save millions of dollars in IT costs by rapidly automating the process of accessing, provisioning, and managing IT infrastructure.

Founded in last March, Jareva is privately held and backed by Crest Communications Holdings, Labrador Ventures, and Satwik Ventures. Angel investments and venture capital funding total around $10.7 million till date.

Disclosing this here on Wednesday, JumpStartUp managing director Sanjay Anandaram said through automation, Jareva solved the IT business process and systems management problems that have been plaguing companies for years.

"It makes sense to invest in a company that is ahead of the pack in this critical business area," he added.

Claiming it to be the first investment the Bangalore-based JumpStartUp was making in an early stage technology startup in the US this year, Anandaram said controlling escalating operations and labor costs associated with managing IT infrastructure had become one of the major concerns of enterprises and service providers today.

Since its formation last year, JumpStartUp has invested $1 million each in three Indian start-ups, viz., QSupport, Apnaloan.com, and Smartcc.com with 25-30 per cent stake in each of the emerging companies.

"Everyone agrees automation is the best solution to this problem, but until now, no one has been able to work across platforms, operating systems, and networks. So many companies say they can automate the IT environment, but in truth they're only focusing on point solutions," Anandaram asserted.

According to Jareva CEO Jagadish Bandhole, by reducing server provisioning from 10 days to 10 minutes and allowing one IT administrator to handle more than 500 servers remotely with a Web browser, Jareva's new technology is expected to save businesses nearly $1 million per year per 1,000 servers.

"Jareva has not only developed the technology to automate the IT infrastructure, but also built the product and deployed it in five pilot customers over the past six months," Bandhole affirmed.

Jareva's solution will deliver benefits to managed service providers, application service providers, Internet data centers/hosting services providers as well as enterprises, which have multiple server assets, network elements, operating systems and application configurations, licenses, and storage elements.

JumpStartUp focuses on funding technology and technology-enabled companies. The sectors include Internet businesses, IT services, intellectual property, and click and mortar enterprises.

Its $45-million fund is backed by an investor team comprising top professionals from the Silicon Valley and leading financial institutions from Asia, Europe, and the US, including GE, FMO of the Netherlands, and PPM of Hong Kong.

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