BOV Capital (Blue Ocean Venture (BOV Capital) based in Sri Lanka and Singapore which announced a Rs. 2 billion fund focused on Sri Lankan startups to grow regionally and globally is calling for less cumbersome procedures for venture capitalists to move their cash when funding startups.  This fund is a collaboration between Lanka Angel Network [...]

The Sunday Times Sri Lanka

Venture capital fund BOV Capital urges reducing red tape

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BOV Capital (Blue Ocean Venture (BOV Capital) based in Sri Lanka and Singapore which announced a Rs. 2 billion fund focused on Sri Lankan startups to grow regionally and globally is calling for less cumbersome procedures for venture capitalists to move their cash when funding startups.  This fund is a collaboration between Lanka Angel Network (LAN) founder Prajeeth Balasubramaniam, former LAN Chairman Eric Wikramanayake and Google Inc. Vice President RajanAnandan.  Mr. Wikramanayake stressed that relaxing international cash flows is one way of assisting startups as this step will be easier to lure investors who come as limited partners (LP).

“We incorporated this fund in Singapore as there was also more transparency and governance there.” He added that when the particular startups want to go regional the process of setting up in the region is even more cumbersome.  The fund will invest in startups that have strong teams, have proven product market fit, demonstrated ability to expand outside Sri Lanka and the potential to build large regional or global businesses. The ability to compete globally with unique technology and consumer value propositions will be a very important criterion for all companies that BOV Capital will invest in, Mr. Balasubramanium said adding that the government needs to relook the annual fee for companies at Rs. 60,000.

Over the past five years, Sri Lanka has seen the rapid emergence of a startup ecosystem and the launch of BOV Capital signals a new era for the country’s entrepreneurs, Mr. Wikramanayake said adding that not having PayPal, a worldwide online payments system is also a constraint in attracting foreign LP. “This has restricted internatiional projects that require fast and easy payments.”  BOV Capital received huge interest from investors in India and Singapore who are excited about investing in innovative ‘new economy’ companies from Sri Lanka, he added.  BOV Capital’s target ticket size will be in the range of Rs 100-200 million and the Rs. 2 billion fund will focus on investing and working closely with Sri Lankan technology startups that can build large regional and global businesses.

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