Venture capital major Matrix sets up shop

Matrix Partners, the US-based venture capital firm with close to $20 billion assets under its management, has set up an office in Bangalore. It announced its India presence on Tuesday to augment its investment plans in technology companies in India.

In addition to this, the Bangalore-based office will also aid Matrix portfolio companies in the US to set up their offices in India. Currently, 30 per cent of its companies have such a presence.

Matrix's investment strategy is to invest in companies that they perceive to be on the verge of creating major markets in software, communications equipment, semiconductors, storage, internet and wireless.

Said Tim Barrows, general partner, Matrix Partners: "We see India as an exciting growth opportunity and hope to nurture the entrepreneurial spirit here."

He recalled that "for more than a quarter of a century, we have had the privilege of working with hundreds of start-ups. Our investment ranges, anywhere from $2 million to $7 million in the first round and then we step up the exposure to as high as $20 million for subsequent rounds. We perhaps have had more success backing Indian-led companies than any other VC firm in the US and have been fortunate to be in business with a number of terrific Indian entrepreneurs."

Matrix is currently drawing down its Sixth Fund of $500 million and around 40 per cent of that have been already invested. The Matrix team will meet about 25 entrepreneurs in India during their current ongoing visit and will meet companies in both software products and services sector.

Matrix was one of the investors in Gururaj Deshpande's Sycamore and hit a gold mine when it went public. "Our investments are successful to such an extent that our previous fund of $400 million got us a return 22 times, valued at $9 billion," said Barrows.