Sources inform “Globes” that in the past few months, Pitango Venture Capital has been considering expanding its activities in India and possibly opening an office there. Pitango managing general partner Aaron Mankovski has been a frequent flier between Tel Aviv and India in recent months to learn about markets and meet key people.
Mankovski confirmed that Pitango is considering activity in Asia, particularly in India, but cautioned, "We're at the first stage of study, and we have no conclusions. The results of the examination of our activity in the region could range from a decision to do little beyond encouraging portfolio companies to enter these markets, up to a decision to invest in companies there. But it's too soon to tell."
Mankovski said the decision to examine activity in the area was based on the growth of Asian markets. "It's not new that we've been working extensively to create ties with CEOs and technology managers in large companies worldwide, in order to help business development of portfolio companies. Just as we do this elsewhere in the world, the time has come to approach India, too.
"It's no great secret that various Asian countries have become huge markets in certain areas in recent years. We've been familiar with Japan and Korea for years, and we're now learning about China and India. It's necessary to understand the different sectors and their connections with our companies."
Mankovski said that Pitango wanted to study the subject thoroughly. "We don’t want to be hasty and run with the herd. We want to be sure that we know the key players in different fields before any decision, because development there is strong and rapid."
Mankovski explained that not everything suitable for Amdocs (NYSE: DOX) is necessarily suitable for new start-ups, hence the need for careful study. "The direction is clear, and we have ideas about what can be done. However, we haven’t taken any decisions. The question of timing is critical. The only thing that is clear is that it's impossible to ignore what's happening there."
Pitango completed raising its $300 million fourth fund in July 2004.
Published by Globes [online], Israel business news - www.globes.co.il - on January 31, 2005