Google going for 30 per cent in seed-stage fund

Global IT giant Google will be investing up to Rs 22.5 crore in Ventureast TeNet Fund-II, a seed-stage fund that will invest in technology companies trying to establish their foothold.

The fund is promoted by Tenet Group of Chennai IIT and Hyderabad-based Ventureast Fund Advisors.

“Google has invested Rs 15 crore in this fund so far and is expected to put in the remaining amount by March 2008, when the fund is scheduled to close,” Sarath Naru, Ventureast’s managing general partner, said.

Google’s investment in the fund will be 30 per cent and the remaining will be held by other investors, including SIDBI and Technology Development Board. Ventureast TeNet

Fund has a total size of $18.75 million.

Seed-stage funds, as the name suggests, invest in early-stage companies, plying in technology-based sectors such as IT, renewable energy and bio-technology.

Google made its debut as an investor in venture capital funds in January this year, when it invested nearly $3.75 million in a domestic seed investment firm ‘Seedfund’, which has a total size of per cent13 million.