New Delhi, April 23 -- US-based venture capital firms SYN Ventures and LDV Partners will take a majority stake in secure networking and connectivity solutions firm NetFoundry Inc. from its Indian parent Tata Communications Ltd.
The board of North Carolina-based NetFoundry has approved a fundraising plan with issuance of new shares to the two VC firms, Mumbai-listed Tata Communications said in a stock-exchange filing.
This will dilute Tata Communications' stake to 11.49% from 100% currently. The Tata Group company didn't disclose details of NetFoundry's fundraising plan.
In 2019, Tata Communications had spun off one of its software and business service into a separate subsidiary namely NetFoundry after the segment crossed $1 million in annual recurring revenue. Tata Communications had intended to accelerate growth further by forking out the segment into NetFoundry. The venture was first conceptualised, incubated and funded under Tata Communications' Shape the Future programme.
SYN Ventures is a Florida-based VC firm with a focus on early-stage companies. It invests in seed, Series A and Series B stages of companies in the cybersecurity, industrial security, national defence, privacy, regulatory compliance, and data governance industries. Its portfolio currently includes 30 companies, including AIceberg, Auguria, BforeAI, BreachRx, Halcyon and Terra Security, its website shows.
California-based LDV Partners mainly invests in Silicon Valley startups. It focuses on domains such as AI, automation, advanced industrials, and biotech. It has invested in about 45 companies so far, including five that have been acquired by larger companies such as GE Healthcare and Google parent Alphabet Inc.
Published by HT Digital Content Services with permission from VC Circle.