Monday, July 17, 2006

Technology | Paymate

"Silicon Valley private equity firm Kleiner, Perkins, Caufield & Byers (KPCB) and its Indian partner Sherpalo Ventures have bought an undisclosed stake in Indian mobile commerce enabler Paymate, senior fund officials said.
KPCB's third investment in India suggested that the private equity business was flourishing and that bigger deals could be on the way, industry officials said on Friday.
Sherpalo and KPCB together are investing more than $5 million in the three-month-old company that had been developing for nearly three years a software product to enable transactions on mobile phones, but is yet to launch it.
'The investment is upwards of $5 million,' said Sandeep Murthy, partner at Sherpalo Ventures and the Indian representative of KPCB, but declined to discuss details."


Anonymous said...

Private equity firms generally receive a return on their investments through one of three ways: an IPO, a sale or merger of the company they control, or a recapitalization. Unlisted securities may be sold directly to investors by the company (called a private offering) or to a private equity fund, which pools contributions from Los Angeles business investors to create a capital pool.

Anonymous said...
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Anonymous said...

If a private equity firm can't find suitable investment opportunities, it will not draw on an investor's commitment. Given the risks associated with Los Angeles equity investment , an investor can lose all of its investment if the fund invests in failing companies. The risk of loss of capital is typically higher in venture capital funds, which invest in companies during the earliest phases of their development, and lower in mezzanine capital funds, which provide interim investments to companies which have already proven their viability but have yet to raise money from public markets.