Google Southeast Asia & India head, others launch VC fund for Sri Lankan startups

Photo credit: Hash Milhan.

A new Sri Lanka-focused fund launched today. BOV Capital, run by Google Southeast Asia and India VP Rajan Anandan, Prajeeth Balasubramaniam, and Eric Wikramanayake, is based in Singapore and plans to invest a total of US$14.89 million (INR1 billion) in Sri Lanka-based startups.

Right now, the plan is to spread that money across seven to ten companies, with an investment range of US$750,000 to US$1.5 million. It’s already closed US$4.7 million of the total sum, from participants across India and Sri Lanka.

BOV Capital isn’t focusing on any sectors at the moment, but will look at startups that have strong teams, an idea with product-market fit, and plan to serve markets outside of the island.

That last point is interesting – on the curtails of economic and political upheaval, the country is finally settling into itself. In 2014, its population was placed at 21.6 million, which is miniscule compared to neighboring India’s 1.3 billion people. That means the market potential for startups within the country isn’t that exciting – but as Prajeeth Balasubramaniam explained in a press statement, the relatively high level of education among Sri Lanka’s citizens has produced talented engineers.

See: 6 years after a bloody civil war, Sri Lanka bets on startups, attracts investors

Other initiatives for startups have also launched in Sri Lanka. The Lankan Angel Network, founded by Prajeeth Balasubramaniam, is a group of 75 angel investors. It’s invested in startups like ecommerce site Takas.lk and tech skilling service Lanka BPO Academy.

“We select entrepreneurs with the idea that they will be doing something else in five years,” Prajeeth explained in an earlier interview with Tech in Asia. “The ecosystem here is very young and we’re trying to make it grow. We have a finance team inside our incubation center that helps them project how to financially leave their company.”

Colombo, Sri Lanka. Photo credit: Andrew Fysh.

Prajeeth has also helped launch Venture Engine, an end-to-end entrepreneurship program that includes acceleration, mentorship, and access to investors. Last month, it held a startup competition, in which logistics startup Hire 1 won, and safe baby product brand Quebee Den and grocery delivery company Direct2Door came in second and third.

500 Startups’ South Asia-focused fund 500 Kulfi has also announced plans to invest in the country, and its partner Pankaj Jain conducted a 2-hour long workshop at the recent Venture Engine event.

See: Why investing in Sri Lanka is like turning the clock back for Google India chief