Helion Venture to invest $300-million technology fund

Leading venture capital firm, Helion Venture Partners is all set to invest only in technology startups as it hits the road to raise its fourth India fund.
Helion Venture to invest $300-million technology fund
Leading venture capital firm, Helion Venture Partners is all set to invest only in technology startups as it hits the road to raise its fourth India fund.
The firm joins a growing band of Indian investors enamoured by the soaring valuations of emerging technology firms such as Flipkart, Snapdeal and Ola, which have all rapidly grown into multibillion-dollar entities.
 
Expressing views, said Alok Goyal, partner at Helion told media: "We are not doing any nontechnology investments going forward and even in our third fund, they have been minuscule.We want to be very techfocused,Helion is looking to raise around $300 million for the new fund, slightly higher than its previous fund of $255 million raised in March 2012."
Helion is the first major VC firm managing India-dedicated funds to decide to focus entirely on technology startups. Peers Sequoia Capital India, Kalaari Capital, Matrix Partners India, Nexus Venture Partners and Accel Partners are increasingly leaning towards technology deals, but continue to strike a few non-tech deals.
Between January and March, VC firms more than doubled their investments in domestic technology startups from a year ago to $621 million (Rs 3,875 crore). "Over a period of time, maturity in the technology entrepreneurship ecosystem in India has changed," said Goyal, also pointing out that India now has 300 million internet users as compared to 15-20 million in 2006 when Helion raised its first fund.
In Helion's overall portfolio of around 60 companies, 15 are not tech firms. Two-thirds of nontech deals were made during 2009-2011, and the most recent was in October when Helion invested Rs 35 crore in Bangalorebased ready-to-cook packaged food company iD Fresh Food.
Non-tech companies in its portfolio will not have access to capital from the new fund for follow-on rounds. Goyal, however, said the firm has enough capital in reserve from previous funds to support follow-on rounds in these. Helion recently participated in eye-hospital chain Eye-Q Vision's Rs 60-crore funding round and housing finance lender Shubham's Rs 122 crore follow-on round last year.
Helion will continue to focus on mobile and internet-driven business, and software companies working in enterprise and cloud segments.
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