Former U.S Treasury Secretary Lawrence ‘Larry’ Summers is apparently watching the Indian start-up ecosystem very closely.
Mr. Summers, who is widely expected to become the next Federal Reserve chief, has invested $30,000 in Bangalore-based ZoomCar, a membership-based car rental service. The company has raised nearly half a million dollars in seed funding already. Mr. Summers has also joined the company’s board of advisors, and is expected to play an active investor role, according to ZoomCar co-founder David Back.
“I used to work as a teaching assistant for Larry when I was in Harvard last spring. At that time, he was very sceptical about Zoom. I sent him an update recently, which included a reminder that he is most famous for saying he didn't think Facebook was going to be worth $1 m! He responded asking about investment terms,” Mr. Back told The Hindu.
Mr. Summers' investments are in the form of warrants, which will pay off when the company’s valuation cross $10 million.
This article has been corrected for a factual error.