Bangalore: Technology focused venture capital firm IDG Ventures India and Microsoft Corp.’s India arm announced on Friday a funding programme that could see investments of up to Rs100 crore in start-up companies.
Under the programme, a start-up company gets to use a suite of Microsoft’s tools and technologies for free for three years and access funding of up to Rs25 crore from IDG Ventures India.
“We are their (Microsoft’s) exclusive funding partner till December 2009,” said Sudhir Sethi, chairman and managing director, IDG Ventures India.
Microsoft’s BizSpark programme, through which it helps start-ups with free access to tools, was launched in India in December and 275 firms have opted for it so far.
As the BizSpark initiative is for companies that are less than three years old and have earn revenues of not more than Rs5 crore, Microsoft said.
“More than 95% of our revenues are driven by ecosystem partners...companies working with us. These start-ups will leverage our technologies and tools later,” said Srikanth Karnakota, director, platform strategy, Microsoft India.
IDG Ventures India plans to identify at least three to four innovative technology companies through its partnership programme with Microsoft and intends to invest up to Rs100 crore in them in the next one year.
The firm says deals under this funding programme will not have impact investments it will make separately.
Under the programme, companies are not obligated to source funding only from IDG Ventures India.
At the same time, this programme gives them easy access to funds if they meet investment criterion of the venture capital firm.
“We will also be in a position to look out for companies that can be of interest after a year or two,” said T.C. Meenakshisundaram, founder and managing director, IDG Ventures India, which currently evaluates about 750 technology companies for funding every year and expects to fund at least 2,000 companies by December.