Pune-based mid-sized IT company Persistent Systems has launched a $10 million venture capital fund to invest in very early stage startups.
The VC fund will target to invest in up to 40 start-ups and has already invested in five start-ups from within the country as well as outside, especially in the in US and Israel.
"We are doing idea investing and not investing in a business model," said company's CEO Mrityunjay Singh, adding the fund will act more like an angel fund.
The typical time frame till which fund will stay invested is 3-5 years.
Notably, many IT companies have increased their engagements with the fledgling start-up world and are investing in startups because of the potential to work along side the investee company.
Other IT biggies of India such as Infosys has already created a $500-million innovation fund, while its larger rival TCS has associated with an accelerator called Startupbootcamp to have pitch days in the financial capital and Bangalore.
Earlier in November last year, Infosys co-founders has launched new business incubator Axilor Ventures to invest upto $1 million in Indian Startups.
Wipro, India's third largest IT services company, also has $100-million corporate venture arm that invests in startups especially in robotics and artificial intelligence niche.
Incorporated in 1990, Persistent Systems will be keenly looking at acquisition opportunities to achieve targeted $1-billion in revenues in the next three to five years. Currently, the company have a revenue of about $320 million for FY 2014-15.
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