Businessworld : Number one Indian business portal with incisive analysis and surveys - Technology’s New Entrepreneurs

Businessworld : Number one Indian business portal with incisive analysis and surveys - Technology’s New Entrepreneurs: "That November mission has been followed by several more under the aegis of organisations like TiE and the Indian Venture Capital Association (IVCA). Today, almost every VC in the US wants an India presence. Again, there are two reasons for this. First, emerging economies like China and India are opening up as tech consumer markets. And like Silicon Valley, they too have the skill base to develop these technologies. The icing on the cake, as Binford says, is that the cost of developing new technology is 50 per cent less in these markets. That’s a big draw for VCs. After the Internet bust and the tech slowdown, exit valuations in the Valley have plummeted. In 1999-2000, if it cost $100 million to start a company, the return potential was $1 billion. Post-slowdown, the return potential dropped to $200 million. That meant VCs would have to start companies with $20 million-25 million to achieve exit multiples of nine or 10."