Venture Capital Funds Betting High on New Dot-Com Ventures

Dot Com is currently seeing an unprecedented increase, Social networking and group buying internet venture are hot pick for venture capital.

In May, LinkedIn launched a USD $ 4.3 billion IPO at USD $ 45/- per share, stock debut USD $ 120 on very first day of trading leading the valuation of USD $9 Billion. According to data provided by Morningstar, 42 Mutual Funds now own shares of social networking site LinkedIn (LNKD), which is being traded more than double its May IPO price of $ 45. Having rejected a USD $ 6 billion bid from Google last year, Group buying website Groupon is planning to launch later this year, priced at between $15 billion and $ 20 billion. The company has been called the fastest-growing in history, as its earnings rose from $ 250,000 in the first quarter of 2009 to $ 650 million in the same quarter this year. Online social gaming company Zynga is also planning to float, valued between $15 billion and $20 billion. Other funds have also slowly started added positions in Internet business. Internet radio service Pandora Media (P) is trading for 19% more than its June IPO price, while HomeAway is up 52%. Venture capital fund already made billions in facebook.com even before scheduled IPO.

Back in India , Snapdeal was recently valued at 1000cr and peers like Dealsandyou, Taggle etc are already backed by venture capital fund. More than $ 5 billion of venture capital investment have already being invested into young web companies globally in the first few months of the year. Demand for New Internet brand Development also gone up because of huge venture capital fund flow towards new Internet brand. Expert feels this time its not bubble because every company has proven good business model and Internet user and availability has also grown up significantly in last few years.

"In last 15years of internet business We have seen the complete Internet Business cycle from the rise to bust. But currently the client who approach us for development of new Internet presence properties have strong business Models and have well defined business objectives, The earning estimates are more realistic, compared to that in the year 2000 when every other person wanted to be in the dot com business." Says, Ritesh Kakkad. Internet Expert from IndSoft Systems [http://indsoft.net] A leading web solutions company which survived internet bubble of 2001. Consulting multiple Internet brand since years. He also added, "We handle only limited number of new Internet consulting project as clear focus helps each Internet projects of our customers."

"We are only into Debt syndication and that too on growth stage with internet brands. Purely based on financial track record." said Mr. Anil Yadav, Head Relationship manager for Netz Capital Advisors, a firm that consults businesses on referring to best available banking and NBFC products.

Tag: Venture capital fund, internet brand, indsoft, internet expert

About www.IndSoft.net :
IndSoft.net offers web infrastructure and Managed Dedicated Server to consumers and corporate worldwide. Serving more than 25000+ Customers World Wide, IndSoft has achieved 15 consecutive years of sustained profitability and scalability.


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