Skip to main content

What is Rajeev Madhavan up to?

In April, when Magma Design Automation Inc., led by Co-founder, Chairman & CEO Rajeev Madhavan, announced the acquisition of Vivek Raghavan co-founded Mojave Inc. for about $140 million, many commentators termed the deal "pricey" pointing out that Mojave had no products, zero revenues and just 10 employees.

While it doesn't exactly justify the valuation of the Mojave acquisition, TheDeal.com has published a detailed article explaining why Madhavan is in a hurry to grow Magma through acquisitions. (Magma had also acquired Guruprasad Rao co-founded Silicon Metrics Corp., an Austin, TX based provider of chip design solutions, in November 2003).

According to the article, EDA companies need to have $300-400 million worth of sales to be able to porovide local support to chip OEMs in various parts of the world. "If you have $100 million in revenue, you might be able to afford an office in San Jose and Paris and Tokyo, but Helsinki and Osaka would be too expensive," Mentor Graphics Chairman & CEO Walden Rhines says in the article.

That's why, the article explains, the EDA industry is traditionally cut into two camps: "the big three" (right now, occupied by Cadence Design Systems, Synopsys and Mentor Graphics) and the large group of start-ups focusing on novel and niche design automation software products. "You can be small and very focused, or one of big three, but it is very hard to be in between," Rhines adds.

Click Here to read the full article.

Popular posts from this blog

VC Interview: Shailendra Singh of Sequoia Capital India

In a recent interview to Venture Intelligence, Shailendra Singh discussed some of the firm’s newer investments in the early stage segment including in the online payments space, the progress at a few existing portfolio companies and the active role the firm is playing in helping its portfolio companies scale and succeed in India and globally. Prior to joining the firm in 2006, Singh was a strategy consultant at Bain & Company in New York and before that, an entrepreneur in the digital media industry.

Venture Intelligence: How does Sequoia go about identifying potential early stage investments in India? Is there anything different you are doing today than, say, a couple of years back?

Shailendra Singh: There is a lot more focus on technology investing and early stage investing. In general, as you might remember a few years ago, we were doing primarily growth investing but in the past 18-odd months, we have had a very strong focus on early stage and that’s continuing. In terms of how…

PE investments in 2018 crosses $33-B to set new all-time high

Big Ticket investments in consumer apps Swiggy & Byju’s dominates year-end activity, even as investments in Core Sectors slow down
Private Equity (PE) investments in India rose to their highest ever figure of $33.1 billion in 2018 (across 720 transactions), according to data from Venture Intelligence (http://www.ventureintelligence.com), a research service focused on private company financials, transactions and their valuations. While PE investments have already surpassed the previous high - $24.3 Billion across 734 deals in 2017 - in the first nine months of 2018, the mega investments in Consumer Internet & Mobile startups such as Swiggy and Byjus towards the year-end, helped the 2018 total vault by 36% year-on-year. (Note: These figures include Venture Capital investments, but exclude PE investments in Real Estate.) The year witnessed 81 PE investments worth $100 million or more (accounting for 77% of the total investment value during the period), compared to 47 such transac…

ChrysCapital and Sequoia Capital India grab two awards at APEX’19 PE-VC Awards

Mumbai, India, Feb 27, 2019: ChrysCapital and Sequoia Capital bagged two awards each as part of the “Awards for Private Equity Excellence” (APEX)event organized by Venture Intelligence. 

ChrysCapital bagged the Private Equity Fund Raise of 2018 Award (Closed $850 M Fund VIII within 4 months of launch) and the Private Equity Investor of 2018 Award (for its Exits from LiquidHub with 4x in dollar terms (within 4 years of its $53-M investment), AU Small Finance Bank with 11.5x return,  Torrent Pharma with 2.95x, City Union Bank with 2.83x, L&T Infotech with 2.56x)

Sequoia Capital India won the Early Stage VCInvestor(the firm registered 10x+ exits in Byjus Classes and SCIOInspire) and VC Fund Raise of 2018 (the firm closed an almost $700-M Fund VI).


Award Winners at APEX'19 PE-VC Awards

The event opened with a Fireside Chat with Kiran Reddy, CEO of SPI Group interviewed by his long time friend and colleague Vineeth Vijayraghavan.



Snapshots of the Awards Ceremony: (L-R) Gopal Srinivasan, …