Tech majors are wooing Indian startups as they search for the next big domestic product company. Microsoft and Qualcomm have recently announced their plans to fund startups. Microsoft, today said that it launching a startup programme that would identify 10 startups and provide them with physical work places, venture capital, provide management mentorship and access to high end technology to startup companies.
Microsoft is eying startups in the areas of mobile computing, cloud, social media and big data technologies. Instead of providing capital, Microsoft will provide startups access to its Windows Azure technology worth $60,000. Similarly, Qualcomm Ventures, the investing arm of Qualcomm is eying investments in the mobile startup segment.
Foreseeing growth
To foster development of the mobile related ecosystem in India, the company plans to invest $5 million in Indian startups. Initially, the company plans to invest $100,000 as seed funding to startups working areas like mobile apps, devices, clean tech in mobile and analytics. Called QPrize, this is the third year that Qualcomm is investing in India through this initiative.
Mr Amit Chatterjee, Managing Director, Microsoft India R&D said: “We see growth in areas like e-commerce, mobile apps, social apps, gaming, education and healthcare where startups can play a huge role.”
For VC requirements, Microsoft has roped in Draper Fisher Jurvetson, NEA Ventures, IDG Ventures amongst others. “We see a lot of interesting companies in the mobile startup ecosystem in India,” Mr Karheepan Madasamy, Senior Director Ventures, India and Israel, Qualcomm.
In the last two years Qualcomm QPrize invested in startups like Reverie Language Technologies and Capillary Technologies. The company has invested in Indian startups like Apalya Technologies and Mapmyindia.com.
Hyderabad Angels, a network of entrepreneurs and high-net worth individuals, has invested in three start-ups recently.
“Typically, each investment will be around Rs 2 crore,” Mr Srini Koppolu, former Managing Director of Microsoft India Development Centre, said. After quitting Microsoft a year ago, Mr Srini is actively pursuing investment opportunities in early-stage companies.
“Our network is not interested in on-paper ideas and look at projects that go much beyond the ideation stage,” he said. In association with The Indus Entrepreneurs (TiE), Hyderabad Angels and other IT honchos interested in building an ecosystem for start-ups, he coordinates Start-up Weekend programme every month.
“While focussing on the domain areas, we also help them in understanding when to add a co-founder, how to build a team and how to seek investments,” he said. “We are planning Idea Start-up Carnivals in association of ISB, IIT (Hyderabad) and BITS where we invite students to come up with ideas,”
Mr J A Chowdary of TiE, said. Mr Sashi Reddi, who sold testing tools firm AppLabs, has earmarked Rs 100 crore to invest in early stage firms. He also started a small facility to provide plug-and-play facility for start-ups.