TiE to tap nontraditional sectors

With information technology and telecom sectors now not seen as hotbeds of investments due to the financial turmoil, The Indus Entrepreneurs (TiE) is looking to nurture ideas in non-traditional sectors like clean technologies, manufacturing, SME and social entrepreneurship.

Speaking to Business Standard, Ravi Narayana, representing the Bangalore chapter of TiE, said efforts were on to promote inclusive entrepreneurship encompassing new areas. “Manufacturing so far is not seen as an investible option as the expectations on the return of investment are high,” he said, adding venture capitalists and other investors would be cautious about their investments in these difficult times.

TiE, which works to promote entrepreneurship through education, mentoring and networking, will include many of its chapters in exploring new segments. It would also spot investment opportunities in rural areas. As a first step, the Bangalore chapter will hold a TiE summit next month to prepare an array of entrepreneurs to meet the global challenges. “India defies all business paradigms. Here size of opportunity is huge but again scalability is a challenge,”' he said.

According to Krishna Tanuku, executive director of Wadhwani Centre for Entrepreneurship Development at the Indian School of Business, venture capitalists had exercised unusual caution this time in evaluating business plans. Tanuku was part of the team that scrutinised the business plans at the recently concluded TiE-ISB Connect here.

In all, 150 plans were submitted of which 30 were shortlisted and 6 emerged winners, he said without putting a figure on the investments that these plans attracted.

The fact that the investors are looking at new channels is aptly proved by their choice of business plans which, among others, included content syndication, private partnership in health delivery by government schools, value addition to banana (products) and low-cost health services.