India-based corporations are scouring Silicon Valley for small and medium-sized companies in the $20 million to $200 million range, with a particular interest in management and networking skills.
"They need the contacts," says Vish Mishra, a venture capitalist with Menlo Park-based Clearstone Venture Partners. "They are active not only in Silicon Valley, but in Europe, Asia and elsewhere."
The stock value of such large concerns as the Tata Group, with more than $17 billion in capital, the $3 billion Nicholas Piramal India, a pharmaceutical company, and the $7 billion Aditya Birla Group has skyrocketed in New York and Bombay stock markets over the past few years.
Some of the more recent deals include Fremont-based IT-system concern, Cymbal Corp., which was purchased by Patni Computer Systems Ltd. for $68 million and Santa Clara-based iCelerate, which was purchased for an undisclosed sum by e4E Group, an India-based outsourcing company.
Arun Natarajan is the Founder of Venture Intelligence India, which tracks venture capital activity in India and Indian-founded companies worldwide. View sample issues of Venture Intelligence India newsletters and reports.