According to a media report, Breathe Well-being, situated in Delhi NCR, laid off over 100 workers during a reorganisation exercise last week. According to the report, the startup’s inability to secure new investment and its short six- to one-year runway were the reasons for the layoffs. The reorganisation exercise may have affected up to 120 people. Nevertheless, the business has laid off 90 of the 290 workers in its India unit, cofounder and CEO Rohan Verma told a media outlet. He also denied the claims of a lack of funds, stating that a new round of funding has been closed by the startup and would be revealed shortly. The report stated that the sales team was particularly hit by the layoffs, which affected workers in a variety of departments, including marketing, technology, and human resources. Nearly three years have passed since a media outlet exclusively revealed that Breathe Well-being had let go of about fifty workers.
Shifting Focus to US Market
The US market will now be the primary focus of Breathe Well-being. They said that, aside from the US, it has ceased onboarding new users in Africa, Australia, New Zealand, India, and other markets. In India and other nations, they have been having problems with prices. After serving the current clientele, they plan to shut down within the next six months. They will concentrate on the US market as it is producing results, according to one of the sources. In response, Verma stated that the firm has chosen to concentrate on international markets, particularly the United States. Breathe Well-being, which was founded in 2020, aids in the prevention, treatment, and reversal of Type 2 diabetes. It asserts that it provides a simple yet efficient substitute for medications to do this. According to Verma, the business is helping the affected employees find jobs and offers career counselling in addition to severance money.
Financial Report
In its most recent pre-Series B funding round, which was co-led by 3one4 Capital, Accel, and General Catalyst, the business raised $6.1 million. Supermorpheus and FounderBank Capital also participated in the fundraising round. The business has raised more than $10 million thus far, and its backers include Y Combinator and Scott Shleifer, the former CEO of Tiger Global.
About Breathe Well-Being
Breathe Well-being’s digital therapeutics program helps people lose weight and prevent or manage chronic lifestyle disorders. Users are able to follow the lifestyle program from the comfort of their own homes because it is remotely supplied via phone and mobile app. Breathe Well-being was founded by Aditya Kaicker and Rohan Verma, and it has shown promise in helping patients reduce or stop taking medication for lifestyle diseases, including Type 2 Diabetes, lose weight, and develop long-term healthy habits. The business is searching for ways to enhance its sales procedures in order to increase the number of people who sign up after the brand’s one-week free trial.
Startup companies need a certain amount of investment for growth. Wealthy investors like to invest their capital in businesses with long-term growth in view. This capital is known as venture capital and the investors are called venture capitalists. The venture capital investment is made when a venture capitalist buys shares of companies and becomes a financial partner of their business.
The data recorded at the end of Q3 2019 states that the top 10 most active Venture Capital firms in India alone contribute to 32% of the total deal count in the startup ecosystem. The Venture Capital investment is often termed as risk capital or patient capital. This is because most VC investing capitals or rather a majority of them harbor tremendous risks of parting from the money invested if the venture doesn’t succeed. Besides, the capital coming from venture capital firms or VC funds usually needs a medium to long-term period for the investments to fructify.
The Indian startups secured over $12.1 billion from the venture capital funds in the first 6 months of 2021, which is $1 billion more than the overall funding that they received last year. Venture Capital (VC) investment in India more than doubled from its previous quarterly high of $6.7 billion in Q2 2021 to $14.4 billion during Q3 2021, according to a recent report by KPMG.
In the year 2021, the Indian startups have successfully managed to mop up $36 bn worth of funds and most of them came from the VC funding for startups and private equity investments, which increased by 3X from the earlier year. These funds are not only helping the startups find it easier to raise funds but are also adding gear to the Indian startup ecosystem, thereby making it a prominent and growing entity in the global landscape.
Citing information from Venture Intelligence, the total investments in the first half of 2023 stood at $3.8 billion, which is divergent from the substantial figure of $18.4 billion seen previously.
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Sequoia India & Southeast Asia has undergone a rebranding process and emerged as Peak XV Partners. Sequoia Capital the parent organization of Peak XV Partners is an American venture capital firm, headquartered in Menlo Park, California. Sequoia invests in both public and private companies. Sequoia Capital has invested in over 1000 companies since 1972, the list of which includes big names like Apple, Google, Oracle, Nvidia, Github, and more. It is mainly focused on the technology industry. Peak XV Partners has invested in companies such as JustDial, Knowlarity, Practo, iYogi, and bankbazaar.com. It has assets worth $5.4 billion under management in India and it is spread across seven funds.
Every six months, Sequoia shortlists 15 to 20 startups for each cohort and provides a capital investment of $1 Million to $2 Million with participation from other investors.
Accel, formerly known as Accel Partners, is an American venture capital firm based out of Palo Alto, California, US. The company has its offices in Palo Alto and San Francisco along with operating funds in India, China, and London. Some of the major companies that Accel has funded over the years are Facebook, Flipkart, Atlassian, Slack, Spotify, Etsy, and more.
Accel currently has assets of more than $1.6 billion under management. It has closed nearly six funds in India. The company’s portfolio of funding Indian businesses includes names like Flipkart, Swiggy, Blackbuck, Cure.fit, and more. The firm’s growth capital investments focus on more developed companies that require a larger amount of capital to expand their business.
Accel secured a substantial sum of $650 million in 2022 for its seventh fund, known as Accel India VII. This fund supported early-stage startups in both India and Southeast Asia.
During the first quarter of 2023, the VC firm actively engaged in 12 investment deals with promising startups. Among the recipients of their investments were Zypp Electric, Kratos Studios, Rigi, and Brick&Bolt. Notably, Accel took part in a total of 48 investment deals over the course of 2022.
Accel is a venture capital firm that concentrates on the following technology sectors: Consumer, Infrastructure, Media, Mobile, SaaS, Security, Customer care services, Enterprise software, and E-commerce.
Blume Ventures is an early-stage and seed-stage venture fund that has its headquarters in Mumbai, Maharashtra, India. The company was founded in 2010 as a venture capitalist firm that aims to improve startup financing in India. Blume Ventures primarily focuses on tech companies. The company launched its first micro-VC fund in 2011, becoming the first institutionalized early-stage investor at that time.
Blume Ventures raised a $41 Million opportunity fund in 2020, which was one of the largest domestic opportunity funds among the Indian venture capital funds designed to invest in best-performing portfolio companies. From this fund, Blume has invested in Series B to D rounds in firms like Unacademy and Servify. The company had nearly three other funds the last one was $102 Million before the COVID-19 pandemic in India. The VC firm has nearly $225 Million in total capital under management. Blume Ventures boasts of managing capital amounting to more than $280 million and has backed 150+ startups.
During the year 2022, the venture capital fund successfully concluded a funding round, securing a total of $250 million for its operations. This enabled them to support 31 Indian startups, notable among them being Lambdatest, Pixxel, and Jai Kishan, an agritech startup.
During the first quarter of 2023, Blume Ventures engaged in funding rounds for 20 startups, providing investments to notable companies including ApnaKlub, Virohan, ElectricPe, and Aerem.
Capital Float, Firstcry, Swiggy, IndustryBuying, Aye Finance, Rivigo, Cleartax
Key Sectors
Fintech
Stage
Stage Agnostic, Private Equity
Website
Elevationcapital.com
Venture Capitalist Firm – Elevation Capital
SAIF Partners rebranded as Elevation Capital on October 20, 2020, is a stage and sector-agnostic private equity firm in Asia. The firm is headquartered in Gurugram, Haryana, India, and aims to make minor investments in seed-stage, early-stage, and later-stage companies. Elevation Capital (formerly known as SAIF Partners) was started as Softbank Asia Infrastructure Fund (SAIF) in 2001 with a $400 Million fund where Cisco Systems and Softbank Group were the sole limited partner.
When Elevation Capital started as SAIF Partners, it was headquartered in Hong Kong and was focused on China, India, Hong Kong, and Taiwan. In India, the venture capital firm has offices in Bengaluru and Gurugram. Elevation Capital had already invested in the early stages of companies like FirstCry, Just Dial, MakeMyTrip, Meesho, Paytm, ShareChat, Swiggy, and more. The firm has doubled its investment in Indian firms in 2020 into new segments like edtech, health tech enterprise software-as-a-service (SaaS), entertainment, and direct-to-consumer startups.
Tiger Global Management LLC operates as an investment firm that is focused on public and private companies in the global Internet, software, consumer, and financial technology industries. The mission is to generate world-class investment returns over the long term. It builds a unique, global investment platform. They invest in high-quality companies that benefit from powerful secular growth trends and are led by excellent management teams.
Tiger Global Management was founded in 2001 and is headquartered in New York, US, and is one of the most global investors in Indian startups that has started investments of around $300 Million. It has backed more than 13 companies, including a $90 Million round in agri-tech startup Ninjacart and a $60 Million infusion in B2B industrial goods marketplace Moglix in the first half of FY19.
The company is said to have invested in more than 442 companies across the globe with 7 designated funds. It has also witnessed 64 exits since its inception in 2001. In India, this VC firm has invested in more than 97 startups. Tiger Global is reported to have raised the highest amount of capital amongst venture capital firms between 2007 and 2017. In 2020, Tiger Global helped its investors earn around $10.4 billion, which is more than any other hedge fund on the annual list of London fund-of-funds firm LCH Investments’ top 20 managers.
Razorpay had been among the companies, which includes Urban Company, Flipkart, Moglix, and more that Tiger Global Management had invested. In the first half of 2019, Tiger Global Management made its founder, Coleman, the top-earning US hedge fund manager in 2020 where the company had mopped in around $3 billion in fees and gains on investments.
In mid-2022, Fund 15 concluded its fundraising with an impressive total of $12.7 billion, showcasing a significant growth of 2 times compared to the 16th equity fund announced in October.
In June 2023, Tiger Global successfully secured $2.7 billion for its new fund, though it fell below its initial target of $6 billion.
Kalaari Capital, founded in 2006 in Bengaluru by Vani Kola. It focuses on technology-related companies in India. Till now it has made more than 92 investments across 3 funds and witnessed more than 15 exits from companies like Myntra and Snapdeal. It has also made a partial exit from Zivame.
Kalaari Capital manages $650 Million in assets under management. It boasts of a strong advisory team in Bangalore investing in the early stage. Kalaari is passionate about investing in entrepreneurs who are poised to be tomorrow’s global leaders. This firm had funded $290 Million in 2015, which was the largest fund by an Indian VC at that time.
Matrix Partners is a US-based private equity investment firm focused on venture capital investments. The firm invests in seed and early-stage companies in the United States and India. It mainly concentrates on the software, communications, semiconductors, data storage, Internet, or wireless sectors. Matrix has invested in Apple Computer, Alteon WebSystems, and Office Club. It is said to have nearly $1 Bn as assets under management (AUM). The company has invested in more than 549 companies throughout the world with its second fund. Online gaming platform Zupee raised $10 Million in a funding round led by US-based growth equity firm WestCap Group and existing investor Matrix Partners India.
The firm has also noted 120 successful exits from companies like HubSpot and Oculus. The firm entered India back in 2006 under the leadership of general partners Avnish Bajaj and Rishi Navani.
Nexus Venture Partners was founded in 2006. Silicon Valley and Mumbai-based venture capital firm, Nexus Venture Partners is the first India-US venture fund. The company has grown to be a popular venture capitalist firm that has helped a list of companies to raise funds like WhiteHat Jr., Rapido, Delhivery, Zomato, and more.
The firm makes investments in early-growth stage companies with an average ticket size of $500K-$10 Million. The firm had raised $100 Million in its first fund. It is said to have more than $1.4 Billion in assets under management as of FY 19. The firm has invested in over 100 startups such as Zomato, Snapdeal, Delhivery, Goodera, etc. Its successful exits include Gluster, Gitter, ElasticBox, and MapMyIndia among others.
By March 2023, Nexus Venture Partners had successfully raised a total of $2.6 billion in funding in a span of seven funds.
WebEngage, Wow! Momo, Druva, Box8, Faballey, Little Black Book
Key Sectors
E-commerce & Agriculture
Stage
Early Stage, Seed
Website
Iangroup.vc
Venture Capitalist Firm – Indian Angel Network
Founded in 2006, in New Delhi, India, Indian Angel Network (IAN) is a group of primarily Indian angel investors funding early-stage startups. The group had 450 members from 11 countries in 2017. Indian Angel Network, India’s first and Asia’s largest angel network brings together successful entrepreneurs and CEOs. The group has invested in companies, such as PregBuddy and SuperProfs. In 2018, one of its founders Padmaja Ruparel was ranked amongst Fortune (magazine)‘s list of The Most Powerful Women in India.
On Nov 8th, 2020, the Indian Angel Network (IAN) announced the joint with Bangladesh Angels Network (BAN). The aim is to work together to source, cross-refer, and promote linkages in technology-enabled startups in India and Bangladesh to create an enabling environment for venture investing in both ecosystems. IAN is a SEBI-registered early-stage fund with more than 470 investors from around 11 countries. It aims at investing up to $1 Million, with an average ticket size of about $400K-$600K.
By October 2022, Indian Angel Network had successfully raised a total of ₹20.5B billion in funding in a span of four funds.
Omidyar Network India was founded in 2004. Omidyar Network India is an investment firm focused on social impact. The company looks to invest in startups that are helping to build more inclusive and equitable societies for the benefit of many. It provides grants to nonprofits in the areas of digital identity, education, emerging technologies, financial services, and more. The company started ReSolve Initiative, which is designed to invest in building solutions for two long-standing themes – MSMEs and migrant workers. The initiative will look to entrepreneurs, thought leaders, and policymakers to come together to reframe and resolve the issues plaguing these areas.
It has invested over $300 Million into the Indian startup ecosystem. The company has also decided to invest an additional $350 Million (INR 2486 Cr) in the upcoming five years. By this investment, the social impact investment firm also wants to target 500 Million individuals, who have just started using smartphones.
Features of Venture Capital Investments
High-risk investment
High Tech projects
Participation in Management
Length of Investment
Illiquid Investment
How the Venture Capital Industry Works
Methods of Venture Capital Financing
Equity financing – Equity financing is the raising of funds by selling the shares of the company. Sometimes companies need money for short-term or long-term investments and the sale of shares proves beneficial in the way that they simply sell their shares or the ownership of the company in return for cash
Participating debentures – This is the form of raising capital from venture capitalists and other companies in different phases with varying interest rates. Here, the initial seed round comes without any interest, however, the successive rounds, as the startup grows, are chargeable at increasing interest rates.
Conditional loan – Conditional loans are another way of raising funds that do not carry interest. These loans can be availed by startups and other companies to meet their funding needs but they need to be repaid to the lender in the form of royalty once the company starts making revenue. The rate of royalty varies from (2-15)% based on several factors like the gestational period, external risk, and more.
Income note – Income notes can be categorized under hybrid financing that is similar to traditional and conditional loans in characteristics when combined. In this form of a fund raised the company for which they have to have both royalty and interest but at comparatively lower rates.
Convertible loans – Going by the term, “conditional” loans are the loans that are provided to startups and other business ventures on the condition that if the loan amount is not paid within a stipulated time they can then convert the same into equity.
The venture capitalist provides the funding knowing that there’s a significant risk associated with the company’s future profits and cash flow. Capital is invested in exchange for an equity stake in the business rather than given as a loan.
A venture capital investment company is an investment firm that invests in startups and mentors them for their growth. Venture capital firms are generally made up of well-off investors, investment banks, and other financial institutions.
How many Venture Capital firms are there in India?
There are over 800+ venture capital firms in India, as of 2022.
What are the top Venture Capital firms in India?
Some of the top Venture Capital firms in India are:
Peak XV Partners
Accel
Blume Ventures
SAIF Partners
Tiger Global Management
Kalaari Capital
Matrix Partners
Nexus Venture Partners
India Angel Network
Omidyar Network India
What are Corporate Venture Capital funds?
Corporate Venture Capital funds can be defined as the corporate funds that the Corporate Venture Capital firms invest directly in the external startup companies.
To list some of the top corporate venture capital firms:
Brand Capital
Amazon and Amazon Alexa Fund
Google and Google Ventures
Unilever Ventures
Samsung Ventures
Intel Capital
Microsoft
Bain Capital Ventures
Reliance Capital
Mahindra Partners
Experian Ventures
Lodha Ventures
How to raise venture capital for a tech startup?
If you are looking to raise venture capital for a tech startup that is on your mind, then here are some decent ideas that you can go for to raise some venture capital:
Set out with a powerful business idea
Make a unique and foolproof business and revenue model
Make a list of the criteria for getting funds from a specific list of venture capitals
Know your venture capital firms
Prepare your pitch
Reach out to prominent venture capital firms politely and confidently
Speak well and support your statements with research data
Communicate your ideas clearly
Establish your value propositions well
Wait for the results
What are early stage VC firms?
The early stage VC firms are the venture capital firms that are typically known to support startup businesses in their earlier stages of growth. These stages also include the beginning phase when the projects are still in the market research and development stage.
Say you have got a brilliant idea for a startup that can change the way we see things, that solves a problem that everyone needs a solution or boosts the economy. But you do not have enough money to put your vision into being. Sure, there are a lot of ways in which a startup can get funding to establish the foundation of the business. But given the fact that three out of four startups fail, who would like to take the risk to invest in a newfound business?
Capital and startup go together, that is where a VC (venture capital) firm comes into the picture. But if you are not very familiar with the term. Continue reading with us to get an idea of what a venture capital firm is.
People involved in a Venture Capital firm include entrepreneurs, investors, investment bankers, and venture capitalists. A venture capital firm will invest in your business with the aim of a good ROI (Return on Investment) and have a stake which is usually less than 50% in the ownership of your startup. The other main goals include exiting the investment. Either by selling off their stake or through an IPO (Initial Public Offering) at a profit and giving back to its investors.
A venture capitalist firm is run by venture capitalists who raise venture capitalist funds by taking money from other people and investing it into promising young companies. These firms could clearly outline which industry they want to invest in. Who are the people they are looking for? What kind of funding do they want to do? At what stage of your business? And how much money are they willing to pool in?
Stages of Funding Rounds
Pre-seed funding round: Investments in startups are known as private equity or venture capital. Despite their high risk, these investments also have a greater chance of exponential growth.
Seed funding: This is the earliest stage in the process of raising capital for your startup.
The A-series: Funding is for when the company has established product and market fit, started to make some serious buzz and its customer base is growing fast.
The B Series: This represents a period when the firm generates significant revenue in particular markets and looks to expand its reach.
The C series: Eventually, the company will expand and operate globally. If it is ready for an IPO, it may be purchased by another company or continue operating as a private company.
Other Ways of Fundings for a Startup
Besides Seed Funding, there are other ways too, by which a startup can collect funds, some of the common ways are:
Bootstrapping is a method of raising pre-seed funds. When a startup bootstraps itself, it means that it launches without the help of external investors. Thus, the cash flow produced by the business itself fuels internal growth. A bootstrapped business may raise capital through customer funding, personal debt, or personal savings in its initial stages, which works as an effective model for some new companies. However, bootstrappers may face cash flow issues due to high levels of personal stress.
Governments or industry-specific organizations provide grants to these startups for entrepreneurs who do not wish to give up equity, grants are another alternative for venture capital.
Family, friends, and relatives are usually the first ones to support and invest in your startup. When you haven’t achieved much success or haven’t done anything, that can prove a tangible return on investment. In this scenario, your stakeholders may have limited or no experience with venture capital. Known as the three F’s (Friends, Family, and Fools), this is considered the fourth type of pre-seed funding.
Pre-seed accelerator programs are the fifth type. Through these programs, founders learn lean startup practices, develop a scalable and repeatable business plan, and show some product-market fit to attract early customers to their product.
Lastly, crowdfunding can be used for pre-seed funding, and here financing is approached differently. A crowdfunding campaign is a way of raising money from many individuals in small amounts, often online. The types of crowdfunding include equity-based, reward-based, debt-based, and donation-based.
Check out the Top 10 active VC Firms in India in 2022.
Tiger Global Management
Founder: Chase Coleman III
Established: 2001
Investment stage: Series A to pre-IPO stages of companies
Industry: Software, Consumer, and FinTech
Portfolios: 763
Headquarters: Mumbai
Tiger Global Management based in New York has affiliate offices in Hong Kong, Beijing, Singapore, and Bangalore. It is one of the most active global tech investors and follows a long-term-based investment approach to generate superior risk-adjusted returns for its investors. They started their public equity in the year 2001 and private equity in 2003 making investments in growth-oriented private companies from early to late stages.
Last year it was listed under the list of the world’s biggest unicorns with most of the co-investors in the company being Accel, Coatue, and DST Global. Some of their notable investments include companies like Shein, Meta (formerly known as Facebook), Coinbase, AirBnB, Uber, SoftBank, and more. Their latest fund size as of March 2022 is $12.7 billion.
Omidyar Network India
Founder: Pierre Omidyar
Established: 2004
Investment stage: Early-stage enterprises
Industry: Digital Society, Education, Emerging Tech, Financial Inclusion, Cities & Innovation, and Property Inclusivity
Portfolios: 100+
Headquarters: Mumbai
Omidyar Network India
Omidyar Network India is a part of the Omidyar Group, whose organizations and initiatives are supported by philanthropists Pam and Pierre Omidyar, founder of eBay. This period represents a period when the firm generates significant revenue in particular markets and looks to expand its accompanies to fast-track its growth. As well as giving access to the Center of Excellence Board for strategic and operational inputs.
They have a total of 102 active investments, raising the combined fund size to around $417 million. Few notable clients of Omidyar Network India are 1mg, Quikr, WhiteHat Jr, Zest, etc.
Accel
Founders: Jim Swartz and Arthur Patterson
Established: 1983
Investment stage: Pre-seed, seed, early, and growth-stage investments
Industry: Computing and Storage, Infrastructure, Consumer, Internet & Media, Enterprise Software & Services, Mobile Networking Systems, Retail Consumer, Security, Technology Enabled Services
Portfolio: 1840+
Headquarters: Bengaluru
Formerly known as Accel Partners, Accel has backed up some of the most successful companies like Flipkart, Dropbox, Etsy, Facebook, Spotify, Slack, Vox Media, and many more over the past thirty-five years. Accel has a global community of entrepreneurs and has been investing in private companies from their pre-seed, seed, early, and growth-stage investments.
Founded in 1983, Accel has been one of the most active venture capital firms in Silicon Valley still going strong with their core principles, completing thirty-five years in the industry last year. The company values collaboration, placing the group above everything else, and creating investors from within. Accel continues to move forward with its Silicon Valley state of mind. Their most recent investment made was $57M raised by Middesk in June 2022.
3one4 Capital
Founders: Pranav Pai and Siddharth Pai
Established: 2015
Investment stage: Early-stage venture capital fund
Industry: Fintech, consumer products, SaaS, digital media, climate tech, and digital health
Portfolios: 50+
Headquarters: Bengaluru
3one4 Capital
3one4 Capital is a venture capital firm based in Bangalore, India. Specialities include investment in startups based in early stages, seed capital and early investments. The firm works with the founding team, bringing in subject proficiency to find the best strategy for the product market for defensibility, revenue growth, and creating an impact. Focused on delivering uncompromised end-user experiences, curtailing risk, uncovering new growth opportunities, and yielding rewarding outcomes for all the stakeholders involved.
Interested in the intersection of adjacency that is large, growing, and ready for unique products and services and select market categories, the VC firms’ investments are biased towards companies exploiting technology to create, grow, or dominate large markets in India. Notable investments by 3one4 Capital include companies like Licious, Darwinbox, Jupiter, Betterplace, Open, Bugworks, Koo, Dozee, and Tracxn.
Kalaari Capital
Founder: Vani Kola
Established: 2006
Investment stage: Seed and A Series
Industry: Technology-oriented companies
Portfolios: 110+
Headquarters: Bengaluru
Kalaari Capital
Started in the year 2006 by Vani Kola and headquartered in Bangalore, Kalaari Capital is an early-stage technology-focused venture capital firm based out of Bengaluru, India. Kalaari continues to empower and work with visionary entrepreneurs that build unique solutions that reshape the way Indians live, work, consume and transact. Kalaari partners early with founders and works with them to navigate the inevitable challenges of fostering ideas into successful businesses.
Kalaari believes in being authentic, perceptive, and responsive. Accelerate and enable your firm to give importance to your potential more than your pedigree.
Blume Ventures
Founder: Karthik and Sanjay
Established: 2010
Investment stage: Seed-stage and early-stage companies
Industry: Business products, business services, consumer products, consumer services, financial services, healthcare, information technology, manufacturing, cybersecurity, big data, e-commerce, blockchain, cannabis, business-to-business payments, mobile commerce, Esports, TMT, gaming, and technology-based
Portfolios: 100+
Headquarters: Mumbai
Blume Ventures
Bridging the gap in the Indian market between local angel networks and larger global venture capital firms, Blume Ventures is a key player in India’s startup ecosystem and has backed up and built many transformational networks ever since. Backing up ventures that trigger a fundamental change in consumer behaviour, impacting larger markets, and solving problems that are difficult and uniquely Indian in nature.
The testimonials clearly treat companies as customers, not just as portfolios. Offering more than just financial help, being friendly, being open-minded, and collaborative in their efforts. Blume Ventures has managed over $280M+ in Capital, backed up more than 150 Startups, and made 24 Exits. Ventures like Purple.com, HealthifyMe, Dunzo, Turtlemint, Locus, and more have been backed by Blume ventures.
Helion Ventures
Founders: Rahul Chandra, Ashish Gupta, Kanwaljit Singh, and Sanjeev Aggarwal
Helion Ventures helps organizations build based on strategies and in making strategic choices. It is a $605 Million India-focused VC firm. That supports early to mid-stage venture funds investing in technology-powered and consumer service businesses in sectors like Outsourcing, Internet, Mobile, Technology Products, Retail Services, Healthcare, Education, and Financial Services. Mainly focusing on making investments based in India. Some notable investments were made in ventures like BYJU’S, Gupshup, Ola, LivSpace, Toppr, and more.
India Angel Network
Founders: Padmaja Ruparel, Raman Roy and Saurabh Srivastava
Established: 2006
Investment stage: Early-Stage Venture, Seed
Portfolios: 160+
Headquarters: New Delhi
India Angel Network
The members of the India Angel Network lead from the front, having strong operational experience as CEOs or a background in creating new and successful ventures. The advantages of working with the firm are they are willing to invest money and time, have the ability to leverage a vast network, and give quick feedback on investment decisions.
Keen to invest in startups based in their early stages, the India Angel network provides quality mentoring, and vast networks give input on strategies and move ahead with its execution. Working with sectors as diverse as Agriculture, E-Commerce, Education, Financial Services Gaming Healthcare Hospitality, information, and more. A few notable investments of India Angel Network are WOW momo, Zippr, Wiwigo, Pikkol, etc.
Mumbai Angel Network
Founder: Nandini Mansinghka
Established: 2006
Investment stage: Early-stage investments
Industry: Technology, consumer, life sciences, defence technology, space technology, electric vehicles
Portfolios: 200+
Headquarters: Mumbai
Mumbai Angel Network
The Mumbai Angel Network invests in a wide variety of domains such as—technology, consumer, life sciences, defence technology, space technology, electric vehicles, and hemp seeds. They have over seven hundred investors in more than sixty cities around the world and are focused on new venture investing. The premier private investment platform has invested more than 150 crores with a base of more than 700 investors.
The portfolio of Mumbai Angel Network includes startups like Snackible, LegalKart, Barneys, Brainwired, etc.
Founder: Nikhil Vora (Ex-Managing Director of IDFC Securities), Swati Nangalia Mehra
Established: 2014
Investment stage: Seed, A Series, B series, and more
Industry: Transportation, Logistics, Supply Chain, and Storage
Portfolios: 60+
Headquartered: Mumbai
Sixth Sense Ventures
Known as India’s first domestic consumer-centric venture fund. The Sixth Sense Ventures combines foreseeing a trend together with deep insights and delivers a clear vision. The sixth sense has a focus on Indian start-ups and leads with an immensely powerful team. Having cumulative experience in the wider consumer domain, their core team has a strong Center of Excellence Board.
The company creates value for both investors and invested companies. The firm has strong consumer-centric research and investment analysis in its ecosystem, making it easy for companies to fast-track their growth. As well as giving access to the Center of Excellence Board for strategic and operational inputs. The portfolio of Sixth Sense Ventures includes startups like Ethos, Bira 91, AVG Logistics, MyHealthcare, etc.
Conclusion
The venture capital firms in India are growing at a fast pace and supporting budding entrepreneurs with not only money but also guiding them by mentoring them and helping them grow in various aspects of different industries. Helping entrepreneurs and their startups achieve success against all odds.
One of the most crucial things to consider when starting your own business is acquiring your seed money. Revenue is more likely to be sparse or consistent than abundant when you start your project. For many early-stage firms on the verge of success or, tragically, failure, securing funds and backing from a venture capital investor can be the make-or-break point. Finding the proper VCs to partner with may be difficult, as you want to make sure they are a good fit for your startup’s vision and can provide you with the resources and network you require.
With that in mind, let’s take a look at ten European venture capital firms that specialise in different industries and could be able to help you get the funding you need for long-term success.
Here are some of the top Venture Capital firms based in Europe which help in financing startups and small businesses.
Index Ventures
Index Ventures – Top European VCs for Seed Funding
Index Ventures is a venture capital business located in London, United Kingdom, founded in 1996. The corporation wants to invest in commercial services, media, retail, and information technology.
Deliveroo, FarFetch, Funding Circle, Transferwise, and Revolut are just a few of the London startups that Index Ventures has partnered with. And a sizable proportion of its investee firms have completed successful initial public offerings (IPOs). The fund works with entrepreneurs in any industry and at any level. However, according to its portfolio, it focuses on seed and venture-stage firms in fintech, SaaS, eHealth, entertainment, fashion, and digital infrastructure.
Since 2011, the fund has invested in 64 London-based businesses, totalling 111 individual equity raises. Index Ventures bills itself as a worldwide, people-focused fund that intends to work with entrepreneurs to convert their ideas into global enterprises. Its offices are now located in London, Geneva, and San Francisco.
Seedcamp is a European venture fund located in London, England, founded in 2007 by Saul Klein and Reshma Sohoni. It backs entrepreneurs utilising technology to take on massive, global marketplaces. The fund focuses on early-stage firms and invests between £100k to £2 million on average. The fund helps its portfolio firms establish product-market fit, expands their sales and marketing teams, and connects them with a global network of specialists.
The fund has a strong track record, having supported multiple unicorns such as Revolut, Wise (previously TransferWise), and Hopin, a virtual events platform. Primer, Curve, and challenger bank Monese are among the significant fintech startups in its portfolio. Since 2011, Seedcamp has invested in at least 128 different equity fundraising rounds in 97 innovative startups in London.
The fund’s investments are primarily focused on firms in the European Union, although they also have a significant presence in North America.
Since November 2018, the average seed money obtained for their most recent ventures has been $2.025 million.
They have made several significant investments in recent years. On the 15th of November, 2018, they made a $4 million seed investment in Ezra, and on the 23rd of January, 2019, they made a $1.6 million investment.
SNÖ Ventures
SNÖ Ventures – Top European VCs for seed funding
SNÖ Ventures is a Norwegian early-stage venture capital firm that invests in technology-related entrepreneurs and business owners. It was created in 2015. The members of the SN Initiatives team have a wealth of knowledge and experience in technology-related ventures, and some have even started and run their firms.
Since Magne Uppman and Teodor Bjerrang founded the business in 2015, they have developed offices in their home Norway, Oslo, and a presence in Palo Alto, California. A typical round of seed fundraising is $1 million in size.
01 Ventures
01 Ventures – Top European VCs for seed funding
01 Ventures is a venture capital business situated in London, the United Kingdom’s capital. They specialise in investing in deep technological startups at an early level. The investment team at 01 Ventures comprises experts in their respective technology fields, which helps to influence their investment selections.
01 Ventures invests primarily in European firms, although they have also invested in the United States and China.
01 Ventures was created in 2015 by Correy Voo, Chris Haley, Ton van’t Noordende, and Eeswaran Navaratnam, a group of investors. The average size of a seed investment round at the business is $1.875 million.
Inventure
Inventure – Top European VCs for seed funding
Inventure is a Finnish corporation that provides seed money to entrepreneurs who demonstrate creativity or operate in high-tech fields. Sami Lampinen and Timo Tirkkonen started the venture financing business in 2005.
Inventure positioned itself as a “Nordic technology fund,” with most of its investments concentrated in European nations and some activities in China. One of their latest seed fundraising activities has an average size of roughly $900,000.
Superhero Capital – Top European VCs for seed funding
Superhero Capital is a venture capital firm based in Finland that focuses on early-stage investments. They are primarily interested in B2B software firms focusing on the e-commerce, financial, healthcare, and industrial technology industries.
Juha Ruohonen, Jakob Stor, Jussi Harvela, and Moaffak Ahmed formed Superhero Capital on the 6th of June, 2015, with the help of a group of entrepreneurs.
The company’s interests are primarily concentrated in its home country of Finland. In the previous two years, they’ve invested an average of $1.2 million in other companies’ seed rounds.
Their leading investment on the 27th of March 2018 and their leading investment into Codescoop on the 1st of June 2018 are two instances of their more recent, prominent investments.
Accel
Accel – Top European VCs for seed funding
Accel is a venture capital firm located in Palo Alto, California, founded in 1983 and is run by. The business is looking for seed, series A, series B, and early-stage growth firms that operate on the cloud (SaaS).
Accel Partners manages a venture capital fund in the United States called Accel. The fund is interested in a broad range of tech industries, including enterprise, information technology, consumer, business goods, healthcare, security, services, media, and fintech, having successfully supported the likes of Slack, Bumble, and Deliveroo from an early stage.
Accel has an extensive global footprint. However, its European activities are now managed from London.
Accel is a significant venture capital firm that invests in individuals and their businesses from the beginning to the end of their development. Over the last 30 years, the Accel has funded firms such as:
Since 2011, Accel has made at least 69 equity investments in 31 London-based businesses, including numerous follow-on rounds obtained by Hopin, Monzo, and digital security firm Snyk. The fund invests in growth capital and works with companies to help them build their brands and expand their client base.
Balderton Capital – Top European VCs for seed funding
Balderton Capital is a venture capital firm that invests in European-based technology businesses with worldwide ambitions.
Balderton Capital has worked with over 200 entrepreneurs and raised above $3 billion to invest in their businesses since its inception over two decades ago. The fund takes a long-term strategy, often investing between $1 million and $20 million in the early phases of its growth and supporting them from start to finish.
Since its inception in 2011, the fund has invested in at least 81 high-growth London-based firms. Some among the company’s notable clients are:
Darktrace
Revolut
Crowdcube
GoCardless
Depop
ComplyAdvantage
Citymapper
Ascension Ventures
Ascension Ventures – Top European VCs for seed funding
Ascension Ventures is an early-stage venture capital firm founded by successful entrepreneurs to support the next generation of technology and social impact entrepreneurs. It makes investments in businesses that qualify for the government’s Enterprise Investment Scheme (EIS) or Seed Enterprise Investment Scheme (SEIS). While Ascension does not disclose its investment range, Beauhurst research shows that it regularly invests between £300k and £1.2m.
As we highlighted, ascension Ventures was one of the most active impacts investors in the UK last year. In London, it has funded 78 ambitious businesses through at least 95 equity fundraisings since 2011. The fund also provides coaching and access to its network of industry connections and offers expansion funding.
MMC Ventures
MMC Ventures – Top European VCs for seed funding
MMC Ventures primarily invests in post-revenue technology startups in the United Kingdom. It assists with scaling these enterprises, often investing between £2m and £3m with a 3-5-year exit horizon. The firm was an early investment in Gousto, and it also owns Bloom & Wild, a flower delivery service, and Signal AI, a market intelligence platform.
MMC Ventures has been active in London since 2011, investing in 32 startups and at least 72 equity fundraisings.
The company as a whole has been investing since 2000 and currently manages over $500 million in several funds; as part of the Greater London Investment Fund (GLIF—a fund of funds supporting SMEs in the Capital—it announced a new £52 million seed fund in 2019 to help small firms in the capital.
Conclusion
Whether or not you can get a suitable Venture Capital firm to provide seed money for your company will be the deciding factor in whether or not your business will succeed. So choose wisely.
FAQs
What are the top European venture capital firms?
Some of the top European Venture capital firms are:
Index Ventures
Seedcamp
SNÖ Ventures
01 Ventures
Inventure
Superhero Capital
Accel
Balderton Capital
Ascension Ventures
MMC Ventures
How many VC firms are in Europe?
There are over 1600 Venture Capital firms in Europe.
Nitin Konde
