Google for 30% stake in seed-stage fund

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Mumbai, November 11:: Global IT giant, Google Inc, will be investing up to Rs 22.5 crore (around USD 5.5-million) in Ventureast TeNet Fund-II, a seed-stage fund that will invest in technology companies trying to establish their foothold.

The fund is promoted by the Tenet Group of Chennai IIT and Hyderabad-based Ventureast Fund Advisors.

"Google has invested Rs 15 crore (USD 3.75 million) in this fund so far and is expected to put in the remaining amount by March 2008, when the fund is scheduled to close," Ventureast's Managing General Partner, Sarath Naru, told PTI.

Google's investment in the fund will then be 30 per cent and the remaining will be held by other investors, including SIDBI and Technology Development Board. Ventureast TeNet Fund has a total size of USD 18.75 million (about Rs 75 crore).

Seed-stage funds, as the name suggests, invest in early-stage companies, plying in technology-based sectors such as IT, renewable energy and bio-technology.

Google made its debut as an investor in venture capital funds in January this year, when it invested nearly USD 3.75 million in a domestic seed investment firm 'Seedfund', which has a total size of USD 13 million (Rs 52 crore).

This was followed by an undisclosed investment in the Bangalore-based early stage venture fund -- Erasmic Venture Fund, which has a size of around USD 10 million.

Google's Head of Corporate Development (South Asia), Samir Sood, was not available for comment.