Mckinsey Puts Together Venture Fund Panel

McKinsey India Venture 2000_ the India-specific incubation facility for software start-ups _ has set up a venture capital committee with some leading venture capital funds as members.

The committee includes Saurabh Srivastava's $30 million Infinity Technology Investments Ltd, the $65 million Chrysalis Capital, ICICI Venture and Walden International Investment Group. It is learnt that more venture capital funds will be roped in later.

As per McKinsey's plans, after the initial screening, the promoters' proposals can be presented before the VC committee for funds from the respective members.

"The committee currently consists of these four venture capital companies. There will be two to three more such companies joining this," said Rajat Gupta of McKinsey and Company.

 

"The initial phase of screening and hand-holding would be over in six weeks. Once that is over, if the promoters wish, they can move to the committee for funds," said Gupta.

The committee is also expected to provide the necessary advice to start-ups on venture funding. However, this group of venture funds is not promising any dedicated funds for the programme.

"This is another part of the services that we intend to offer to these companies which are getting guidance under our programme," Gupta told Business Standard. "This group will be part of the mentoring part of the whole programme, where the start-ups will get a perspective about the ways they can get money from venture capital funds."

Besides, the consulting major has also lined up an impressive line of coaches for its mentoring exercise. It is learnt that there are two sets of coaches, with the first group responsible for the fundamental training of these start-up companies. "The first group of coaches, who are about 250 to 300 in number will give them training on fundamental issues like marketing and technical fine-tuning of the ideas," said Gupta.

The second group of coaches consists of Indian as well as foreign entrepreneurs to help the start-ups by giving orientation in the functional aspect of the business.

"We will try to get successful entrepreneurs from either India or abroad to help these start-ups," said Gupta.

In addition, there are also plans to conduct events to allow the start up companies and coaches to interact in various parts of the country.

Besides, McKinsey also plans to utilise its website to help the participants in the programme interact with each other and the coaches. "We are planing to put up bulletin boards and interaction rooms on our web site by March 15, which will help these start-ups to exchange ideas and interact with their partners and coaches," said Gupta.

According to Gupta, the consulting company is in the process of putting together the material for the coaches.