MUMBAI: In a bid to stimulate product innovation in India, which has largely been dominated by a service-oriented startup ecosystem, venture capital firm Ivy-Cap Ventures is in talks to explore across-border fund between India and Israel.The equity fund, which is likely to be sized at $100 million (about Rs 640 crore), will see IvyCap Ventures participate along with an Israeli investor group or fund equally.“This concept of a $100-million India-Israel cross-border fund is something we are working on,” said Vikram Gupta, managing partner of IvyCap Ventures. “We are speaking to an early-stage venture capital fund based out of Israel, which is very active, who may be the other investor in the fund.” Gupta, however, refused to share details of possible partnerships given that talks are still at an early stage.Ivy Cap’s plans to explore a cross-border fund follow the Indian and Israeli governments’ initiatives to invest in and support research and development in the fields of science, technology and innovation as a step up to the $40 million Israel-India Innovation Initiative Fund ( I4F ), which was launched in July last year. Renewed interest in the initiatives surrounding these areas were announced last month during Israeli prime minister Benjamin Netanyahu’s India visit.IvyCap’s fund will focus on startups that are based in Israel but working on India-specific solutions in areas of water, healthcare, agriculture and cybersecurity. The fund’s idea is to enable good technology solutions and products for India while giving Israeli entrepreneurs a market with scale unlike any other to test and market their products.“Israel is full of product innovation talent and we are far, far behind. Product innovation is very expensive, so while these solutions are currently not affordable, at the scale which India offers, these become very affordable.
Source: Economic Times February 13, 2018 02:44 UTC