Netz Capital is a VC fund and advisory focused on nurturing start-ups and emerging companies. Atul Khekade is also a co-founder and CEO of Airnetz Charter and Airnetz Aviation
How important is the role of intermediaries for an entrepreneur in reaching out to investors?
Mentors/Intermediaries are really important. In fact, we are more of mentors/intermediaries than large investors. We began that way. We are a group of entrepreneurs who each contributes in small sizes to the fund to refine the company’s business model and help it achieve critical scale for rapid expansion. The venture can then raise later round for scaling up by acquiring other players or activities that would help increase the user base.
Chairman, Netz Capital
How many investments has your firm made so far? How old is the fund, and what is its size?
We have done 4 investments so far. Initially, we started as a Incubation/start up fund; however, now we are going into early stage/growth capital and real estate finance domain. We are about 2 year old now. Our initial investment pool size was $2 million of which we are all invested. We are in process of fetching another $50 million for early/later stage technology fund and $75-100 million of India Emerging Real Estate Fund.
What is your investment strategy?
For technology, our focus is companies playing in significant global industry market size with “software as a service” model. For the Emerging real Estate fund, our strategy is investing into emerging rural areas where land rates are from $5 to $20 per sq ft.
How has your investment strategy changed given the slowdown?
The strategy is to make small investments and go aggressively towards capturing market share. Business activity in a lot of areas in the market has slowed down which has kept competition literally non-existent. For exponential growth, this is the best time as one can capture market share far more rapidly than other players.
What is the minimum ticket size of your investment?
For technology, we can go as small as $50,000 and upwards of $3-5 million.
What kinds of returns do you look at?
Our target is fetching minimum 300% returns within a four-year horizon.
written by realestateagent, August 26, 2010
written by Srinivas Gopi Chand Dutta, March 04, 2010
written by Mr. Supriya Dutta, February 03, 2010
written by Deepak Bijaya Padhi, October 22, 2009
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