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Indiantelevision.com: This is an interesting development and just what Indian media startup industry has wanted. The Television Eighteen Group is launching a venture fund that would fund startups in the convergent media sector. The fund size is Rs 50 crore ($11 million). It will invest at very early stage. The investment vehicle will be called “Media Venture Capital Trust”.
Here is the text of the communication by TV18 to the Bombay Stock Exchange:
“Authority to Board to make investments in early stage / venture capital investments in the triple convergence space upto a maximum of Rs 500 million. Such investments would be made by the Company as co-investments with the Promoters of the Company and / or identified reputed strategic / financial investors. The Board of Directors is hereby authorized to make, such investments, in their absolute discretion either directly or indirectly in such investee Companies or through a Media Venture Capital Trust (“MVCT”) established for the aforesaid purpose, in accordance with the provisions of applicable law including the applicable provisions of Companies Act, 1956. The MVCT shall be suitably structured as a tax efficient investment vehicle for undertaking these investments and would offer co-investment opportunities to the Promoters of the Company and other identified reputed investors. The Company would seek to invest, directly or indirectly minority stakes primarily in high growth Companies through repayment guaranteed / collateralized instruments convertible into equity, with an option to increase upto majority stake at a later date, wherever possible, subject to necessary provisions and approvals.
Most recently the group acquired a Mumbai-interactive agency UrbanEye Media, as reported by ContentSutra. It had also acquired a 50 per cent stake in the Indian arm of Jobstreet.com. It is also one of the co-investors in Yatra Online.