Intel Capital is itching for more

HYDERABAD: Intel Capital, which has transacted over 50 deals since 1998 when it started doing business in the country, is itching for more action.

This is not surprising considering that India has been better than China or any other country for the venture capital firm in terms of returns with more exit options and conducive environment for start-ups.

Not surprisingly, Intel Capital is preparing for a second fund, details of which Arvind Sodhani, senior vice-president, Intel Corp, and president, Intel Capital, refused to divulge, even as the first information technology fund of $250 million is still to be exhausted.

Over a dozen start-ups and close to IPO investments, including iLantus Technologies, Real Image, Maya Entertainment and Tejas Networks, have been financed through the first fund that was launched in December 2005.

“Understandably, we have become aggressive in India,” Sodhani told DNA Money. The team of investment professionals in the country has been ramped up to eight from the earlier three while the regional headquarters, too, has been shifted to Bangalore.

While Intel Capital’s expectations of returns from early-stage investments are usually pretty high, it has also started investing in companies that are going public or about to get acquired given the shorter gestations on such investments.

“There are at least three to four candidates in which the fund has invested that are planning to go public in the next 12 months,” said Sudheer Kuppam, who has just taken over as the managing director, Intel Capital, India, Japan, Australia and SE Asia.

“We are looking at a run rate of between 10 and 20 investments per year in the range of $1-20 million each while we have also become stage agnostic,” said Sodhani.