Intel Capital sees bubble building in domestic tech start-ups
Mumbai: Intel Capital, the investment arm of the global chip major Intel Corp, on Friday said valuations of local tech start -ups have reached a 'bubble level' due to too much capital chasing too few quality opportunities, even as it announced USD 20 million investments in six ventures.
"I am not drawing parallels. But it feels like the 1998 dotcom bubble in the US. This is not a good sign. Most of the time, we evaluate companies and we have to leave it at that stage as we feel valuations are, too, high. But we are not getting enough good companies to invest".
"There are very few high quality deals," Intel Capital Managing Director for Asia Pacific Suresh Kumar Kuppam said here while announcing investments worth around USD 20 million in six domestic technology companies.
The companies picked up by Intel include Saankhya Labs, Testing Czars, Financial Inclusion Network and Operations (FINO), What's On India, enStage, and Duron Energy.
These investments are part of Intel Capital's ongoing efforts to support domestic technology innovation and entrepreneurship, Kuppam said.
Funds for these investments came from the USD 250 million Intel Capital India Technology Fund established in December 2005 which invests in tech companies to stimulate local innovation.
"Indian entrepreneurs are increasingly at the forefront of innovation, using technology to change the way we live and do work.
"Our investments in these six companies will help them grow their businesses and push into new markets," Intel Capital President and Executive Vice-president, Arvind Sodhani said.