Venture Capitalists Like These Sectors To Throw Their Money At; Are You Game?

Moneycontrol.com: So what are the new businesses venture capitalists are looking to invest?
Of course, it includes digital content, wireless applications and technology and media and entertainment.
Content Broadcasting
Vab Goel, Partner, Norwest Venture Partners says that the future lies with local content broadcasting. In the past it was done through satellite and cable. In the future it will be done over the Internet. This will be taken one step further than what IPTV providers are talking about when they say they want to “control the content” (like satellite and cable providers have).
The Internet will become the transport mechanism for delivering television, movies, news, etc. You will see a lot of new channels which will start to use the Internet as the platform for communication. (Similar to the ways in which publishers first used the Internet to deliver content). Imagine a world where we will be able to watch any local channel from India, China, UK, or the USA using the Internet.
Media and Entertainment
The entertainment and media industry in India is expected to significantly benefit from the fast economic growth the country is witnessing. To boost the sector, the government has opened large parts of the sector to foreign direct investment (FDI). It allows 100 per cent FDI on automatic basis in the film industry with no entry level pre-conditions.
While news related publications are allowed 26 per cent FDI, scientific and technical magazines, periodicals and journals can have 100 per cent. Further, full foreign holdings are permitted in printing plants in designated economic zones. Rahul Shah, Partner, IL&FS Venture Manager thinks film distribution and post production are sectors he sees money pouring into.
Wireless Data Services / Telecommunications
While fixed lines touched 44 million at the end of 2004, the cellular user base registered a 68 % growth to touch the 48-million mark (ed’s update: 65.05 million as of September 2005). More than a third of these subscribers were added during 2004. The growth statistics combined with the government’s decision to increase the foreign direct investment cap in the sector to 74 % is generating interest among global investors. Vab Goel Of Norwest Venture Partners adds, “As mobile users in India are increasing, wireless data services and products continue to be extremely interesting investment opportunities for us.

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