California-based Canaan Partners expects to invest about 20 per cent of its new $600-million venture capital fund in India even as it looks to exit and three other ventures in the country.

“Historically, we invest about 20 per cent of the global fund but the figure can always go up, depending on the deals we sign,” Canaan Partners’ Managing Director Rahul Khanna told Business Line.

Since 2006, Canaan has invested and committed about $150 million in Indian companies and the latest is ninth in the series. “The companies we want to exit have their revenues in tens of millions ($) and are at an exitable stage,” Canaan Partners’ managing director, Rahul Khanna told Business Line. Some of the companies in which the VC firm has invested in are Ashok Soota’s IT services company, Happiest Minds and e-commerce ventures, Naptol and iYogi. Khanna said of the 12 companies Canaan has invested in so far, only two of them have not worked.

“We are active investors as we sit on boards and our risk appetite is fairly large,” he said. Those that have not done well include techtribe, a networking site, and Chakpak, a media content company. Canaan owns 20-30 per cent equity in each company it invests in and has members on their boards.

Regarding the new fund, Khanna said the company expects to invest in about 10 deals in India over three-four years. Khanna said the funds are typically drawn from institutional money, endowments and pensions. The IRR on these funds is 18-25 per cent over a 8-10 year cycle.

India gets between $8 billion and $10 billion of funds for ventures that also include merger and acquisition deals. Of these, 90 per cent are PE (private equity) funds.

In the US, Canaan usually invests in technology and healthcare (drug discovery) sectors but in India, it is more in the technology space and very less in healthcare which is more into retail here, Khanna pointed out.

He said one of the emerging trends in the US is in asset sharing called collaborative consumption.

“Let us assume, I have a spare asset like a cycle which can be turned into an economic asset by giving it on hire. But the US is a trusting market and hence such endeavours can succeed there,” Canaan’s Managing Director said.