Wednesday, January 19, 2011

New seed funding models-a boon for technology startups

Newer models of seed stage funding are emerging that could be a boon for technology startups. One form of that is technology commercialization firms. Such firms work towards helping entrepreneurs commercialize potentially cutting-edge technologies. They are involved from a very early stage of company creation, right from understanding ideas and opportunities, building teams and channel partners and also syndicating venture financing. Seed funding is most commonly provided by angel or other private investors.It is provided to help a business to develop an idea, create the first product, and market the product for the first time.

Firms like The Morpheus and Telnet Ventures fall in this category. Some of The Morpheus portfolio companies like blogging startup Instablogs and Commonfloor, which offers technology to enhance interaction between residential communities, have gone on to receive VC funding at a later stage. Other portfolio firms include robotics company RobotsAlive, e-shopping company Jumadi, and credit verification technology company Crederity.

Read More-The Times of India