Despite the slump in the new economy sectors and the collapse of the dotcoms, venture capital companies are still buoyant about the Indian technology sector and a large sum of money is waiting to be invested.
According to a recent estimate by the National Association of Software and Service Companies (Nasscom), the venture capital investment in India is slated to rise to a massive Rs 50,000 crore by 2008, up from Rs 2,200 crore in 2000-01. But this is very small compared with the $105 billion the venture capital companies invested in the US in 2000-01.
Venture capital (VC) investments in high tech firms in India have grown from Rs 70 crore in 1996 to Rs 2,200 crore in 2000-01.