Hyderabad, 11th Feb. 2025:IXP, a Lifesciences VC backed by JV Ventures, has announced the launch of its first fund to invest in early-stage companies. The fund aims to build a portfolio of B2B companies ranging from Pre-seed to Series A stages.
The IXP Lifesciences Catalyst Fund is targeting a corpus of INR 200 crore with a greenshoe option of INR 100 crore. The fund plans to create a portfolio of 20-25 companies addressing gaps in the market for both services and products. Within the Lifesciences sector, the fund will invest across innovation in areas such as pharma, biotechnology, medical technology, specialty chemicals, agrotechnology and nutraceuticals.
IXP Lifesciences Catalyst Fund Snapshot
Industry Focus
Life Sciences (Pharmaceuticals, Biotechnology, MedTech, Specialty Chemicals, AgriTech, Nutraceuticals)
Investment Stages
Pre-seed to Series A
Target Fund Size
INR 200 crore
Portfolio Size Target
20-25 startups
Investment Approach
Early-stage funding, co-creation of ventures, deep-tech & innovation-driven startups
Website
ixplifesciences.com
Ketki Tulpule, Ph.D., CIO at IXP said, “IXP was born out of a need we saw in the Indian startup ecosystem. In fact, we conducted a pan-India survey to understand the pain points of biotechs from an outside-in perspective. The sector is nuanced and requires investors with scientific expertise, industry knowledge, and operational experience to help biotechs succeed. We are glad to have onboarded industry veterans as council members and advisors who add to the scientific heft of the fund”.
Vishal Goel, Partner at IXP and Co-founder of JV Ventures commented, “The Indian Lifesciences industry is dynamic with large untapped potential. Through IXP Venture Studio, we will co-create companies along with scientists for ideas addressing unmet needs in the market. Unlike traditional VCs, IXP has a hands-on approach through active participation from concept to scale. The Ventureprenuer Program has been designed to transform scientists into founders”.
Jasmeet Chhabra, Partner at IXP and Co-founder of JV Ventures added, “The success of biotech’s hinges on many factors, not just capital. These early-stage companies require access to larger ecosystems for laboratories, networks, and R&D services which we provide through PoweRx, the Lifesciences vertical of JV Ventures. This differentiates IXP from other funds as it leverages synergies within the group to create a winning proposition for portfolio companies.”
About IXP
IXP (an acronym for Innovation Acceleration Platform), is on a mission to support scientists and innovators in their entrepreneurial journey by inducting them into a rich Lifesciences ecosystem. Built by a team deeply rooted in the industry, we understand the capital-intensive and long gestation periods associated with R&D to bring innovative ideas to market. We are not just an investment platform. We are success enablers of biotechs.
In this compelling interview, Ms. Nupur Garg, founder of WinPE, shares her journey from a successful career in private equity to championing gender diversity in the investing industry. Inspired by a desire to address the systemic barriers faced by women in finance, she founded WinPE to promote change and increase female representation. Ms. Garg discusses the current trends shaping private equity and venture capital, the strategies WinPE employs to promote diversity, and the challenges she faced in her career. Her insights shed light on the critical need for inclusive practices in the investment landscape and the role of mentorship and community in driving progress.
StartupTalky: What inspired you to start WinPE, and what gaps does it aim to fill in the investing industry?
Ms. Garg: It is a story of serendipity. The inspiration for WinPE struck me during a vacation. While I was transitioning from my full-time role at IFC, I aimed to build a portfolio of work that would not only leverage my investing experience, knowledge, and skills but also serve a deeply meaningful purpose. One day, I found myself discussing the alarmingly low numbers of women and the lack of gender diversity in private equity with my husband. That conversation and my desire to do something about the situation ultimately led to the founding of WinPE.
In the course of my journey as an LP, I noticed the significant lack of gender diversity in the private equity and venture capital (PE-VC) industry. As I examined the challenges faced by women in this sector, I realized there were systemic issues that needed to be addressed. As I reached out to my network in the PE-VC industry, I found those sentiments echoed by industry leaders and firms – all of whom believed that diversity is critical and were looking for the right suite of solutions that they could leverage, support, and champion.
WinPE was born out of this collective desire to fill systemic gaps. WinPE works with PE-VC firms to change their policies, practices, culture, and decision-making, driving change in the investing industry by increasing access and opportunities for women. In addition, WinPE supports women through mentorship, networking, and career resources, ensuring they have the tools they need to succeed professionally. WinPE works to address the gender gap in the investing industry through multifaceted interventions.
We work closely with members of PE-VC firms to identify and solve the challenges that hinder gender balance, bring forward industry and thought leadership in diversity, equality, and inclusion (DEI), and transform the environment to support equal access and equal opportunity. We also run a suite of initiatives designed to support women in achieving career success in PE-VC – including community building, 1:1 mentorship, networking, career resources, job vacancies, board roles, speaking opportunities, etc. Our mission is to enhance women’s representation in the industry ecosystem, both as investors and as recipients of investment capital.
StartupTalky: What major trends are currently shaping the private equity and venture capital industries?
Ms. Garg: If I focus on WinPE’s PoV, one of the major trends shaping the industry is the growing emphasis on gender diversity and inclusion, which is creating a push toward a more equitable investing ecosystem. Investors are increasingly acknowledging that diverse teams enhance decision-making and financial performance. Initially led by institutional limited partners, the growing commitment to gender diversity has become a priority for leading PE-VC firms, gradually reshaping fundraising conversations. Over time, this shift is expected to reshape the demographic landscape of the industry.
Recent times have seen global structural changes, including digital disruption, AI’s impact on operations, the low-carbon transition, geopolitical fragmentation, and shifting demographic distributions. These are reshaping private markets and creating new opportunities for private capital. After a slow year in fundraising and deal/exit activity, there is now greater appreciation for fund managers who have been creating value and generating liquidity for investors. With substantial dry powder available, the industry is well-positioned to capitalize on current market dislocations. Key trends include:
Digital Transformation and Tech-Focused Investments: Technology-driven companies and sectors such as fintech, health tech, edtech, and SaaS are drawing interest owing to their ability for innovation and disruption. The emphasis on digital transformation is expected to intensify as firms seek out startups that offer scalable tech solutions.
Sustainability and ESG (Environmental, Social, Governance) Integration: Becoming increasingly central to investment strategies. With a growing awareness of the long-term impacts of environmental and social issues, firms are integrating ESG criteria into their decision-making processes.
Resurgence in Deal Activity and Operational Value Creation: There is a strong expectation that private equity firms will see a resurgence in transactions as market conditions stabilize and dry powder continues to pile up. With valuations holding firms for good quality companies, investors are likely to prioritize operational value creation within their portfolio companies, focusing on enhancing efficiency, scalability, and strategic direction to drive growth and achieve higher returns.
Heightened Regulatory Scrutiny and Compliance: As private equity and venture capital sectors continue to mature; they face increasing regulatory oversight. Stricter compliance requirements are being imposed by governments and regulatory bodies to ensure transparency and accountability.
StartupTalky: How do you manage your roles across multiple boards while advancing WinPE’s mission?
Ms. Garg: It is crucial for me to remain fully committed to the role I am playing in the given moment. In board meetings, my focus is entirely on the company’s agenda. As an independent director, fulfilling my responsibilities takes top priority. Similarly, when I am working on WinPE, my focus is on advancing its mission and objectives. In terms of overlap, yes, gender diversity is important to me in my capacity as well. So when in a board meeting, I consider where each company stands on DEI and contribute constructively.
WinPE was built with an institutional foundation and mindset. While my passion undoubtedly drives it, there is an incredible team that is as excited about the outcomes. We all have a role to play in driving WinPE’s mission forward. I do my share as the founder.
StartupTalky: What are the most effective strategies WinPE uses to promote gender diversity in investing?
Ms. Garg: As I mentioned above, at WinPE, we focus on a multi-pronged approach consisting of three main strategies to promote gender diversity:
Collaboration with PE-VC firms to drive cultural shifts and reduce unconscious biases.
Support for women who are already in the industry by offering mentorship and networking opportunities.
Attracting more women into the industry through job and career resources.
We believe that dialogue and action must go hand-in-hand to drive real change. Our approach is multifaceted, focusing on transforming the culture within the investment ecosystem while providing practical tools to support women who are already in or aspiring to enter this field.
What sets us apart is our role as a DEI driver within the PE-VC industry, there is no preaching from the outside. We engage in open dialogues with firms and their decision-makers and catalyze collaborative action toward our shared goal. We complement this with comprehensive resources, including training, networking, and mentorship, to empower women and enable them to thrive professionally. We are also equally focused on building a talent pipeline for the industry via our newly launched career portal. We collate vacancies, job resources, training courses, and close interactions with recruiters for PE-VC aspirants. To increase the representation of women in leadership roles, we have been working with our member firms in placing experienced women on boards of their investee companies.
WinPE adopts a 360-degree approach to this challenge and continuously launches new solutions!
StartupTalky: What barriers to gender diversity have you faced, and how have you addressed them?
Ms. Garg: My professional journey, though fulfilling, has not been without challenges. While discrimination and harassment were prevalent even then, 10-15 years ago no one openly acknowledged either of them. They were often overlooked or dismissed and no one was talking about unconscious biases. When discussing our experiences with seniorwomen and peers in my network, we found a common thread: our strategy for success involved focusing on our work and ignoring gender-based distractions. We worked hard and well, refusing to let surrounding noise distract or drag us down. We must ask colleagues not to view us through gender-coloured lenses, and we must do the same for ourselves.
These experiences have shaped WinPE’s initiatives, aiming to create unbiased workplaces and level the playing field. We strongly believe in creating awareness, fostering sensitivity, and ensuring leadership commitment for DEI, alongside managerial accountability. Through our workshops and discussions with women, we discuss the need to build a winning mindset and the confidence to disrupt sexism. Strong industry networks are crucial for success in PE-VC, and WinPE fosters a supportive community for women in this field.
Finally, I have had a powerful support system in my family and I believe it has been crucial to have that safe space that provided positive reaffirmation. So, this is one piece of advice that I share with young women who ask – the choice of life partner could be one of the most important factors influencing professional success for women!
StartupTalky: How do current trends in venture capital affect investment opportunities for female-led startups?
Ms. Garg: The emphasis on DEI is one of the current trends in venture capital. Development Finance Institutions are pushing gender lens investing, expanding the pool of investment capital available to female-led firms. Research and data stating the improved performances of diverse teams have added to the case for investing in female founders. Women now make up a significant percentage of the startup workforce, including core tech roles, creating a large pipeline of female founders and investors.
At WinPE, we have observed a significant change in the awareness and conversations on DEI within the Indian PE-VC industry. This change is evident not only in firms but also among women who are increasingly unafraid to ask for their fair share. We also see increased demand from PE-VC firms for diverse teams. All in all, there is progress and we are seeing changes seep through.
At the same time, it is too early to declare victory. Industry data continues to reflect a large gap in funding for women-led startups. This is correlated to the large gap in the representation of women in decision-making roles at PE-VC firms. By promoting more inclusive practices and catalyzing resources that accelerate the growth of women as investors and founders, initiatives like those headed by WinPE are essential in closing this gap.
StartupTalky: What key factors should investors consider when evaluating opportunities in emerging markets?
Ms. Garg: Emerging markets offer significant growth potential due to their rapid expansion, increasing consumer populations, and evolving infrastructure. The shift from low- to middle-income status in these regions drives strong economic growth and rising consumer spending.
At the same time, investors must also navigate the higher risks associated with emerging markets, such as market volatility, regulatory changes, currency risk, and political instability. In the more nascent markets, an underdeveloped ecosystem and scant talent pool are big concerns too. These challenges require careful consideration and a strategic approach to portfolio allocations.
Emerging markets are particularly attractive for industries that are leveraging technology to create access to products and services efficiently and affordably. For example, the ability to sell products across a country with the help of technology versus decades of building capex-intensive retail infrastructure or using AI to create smart underwriting algorithms to underwrite credit for the underbanked and new-to-credit consumers. Innovation is driving growth in sectors like fintech, renewable energy, and mobile technology. Additionally, the young and expanding populations in these regions present long-term opportunities in sectors like financial services, retail, healthcare, and education. Ongoing infrastructure development also creates investment opportunities, particularly in construction and related industries.
StartupTalky: How does WinPE measure the success of its programs, and how do you use this data to improve?
Ms. Garg: A focus on outcomes has been a foundational aspect of WinPE from Day zero. We emphasize initiatives where we can have a tangible impact in a sustainable way and at scale. WinPE operates with a fully developed Theory of Change that guides our work and metrics to measure outcomes.
Through our Collegium discussions, we work closely with our member firms to create incremental changes in their policies, practices, and operations to support equal opportunity, equal access, and greater gender balance. Every 12 months, our members identify areas of action and corresponding KPIs. For example, to enhance the hiring of women into teams, WinPE member firms now require a diverse candidate pipeline and are implementing blind screening practices, diverse interview panels, etc.
We have achieved significant progress, with 70% of member firms reporting progress on their KPIs. Very importantly, we have seen a 3x growth in our member firms which we believe is a testament to the incredible work that WinPE and all its partners have done in the 4 years since WinPE’s inception. More than 400 firms from the industry ecosystem have participated in WinPE initiatives and we are excited to have reached that level of penetration in such a short period.
Through the last 4 years, WinPE has organized 40+ knowledge sessions, training etc for women that have seen >9000 registrants and >90% satisfaction scores. More than 70% of the mentees from 3 completed cohorts of our flagship mentorship program have reported career progress within 12 months. And most heartwarming of all, we have countless testimonials from firms and women who love the positive change that WinPE is driving.
A very interesting phenomenon we are experiencing now is the expectation and request that WinPE take the lead in building solutions. For example, last year, we rolled out curated training and workshops on unconscious bias for the PEVC industry. This year, we have launched a career portal to build a talent pipeline for the industry and to support our members in accessing the same. We are helping member firms place senior women professionals on the boards of their portfolio companies. We are also compiling a superset of best practices as a reference guide for our member firms.
By emphasizing results, WinPE has been able to start addressing challenges to DEI from multiple fronts.
StartupTalky: What actions can institutional investors take to support gender diversity more effectively?
Ms. Garg: I believe institutional investors are in a privileged position from where they can strongly influence the industry. Institutional investors can promote gender diversity by setting transparent, quantifiable targets for gender diversity in their operations and investment portfolios. This may include goals for female representation in decision-making roles, leadership positions, and across the workforce.
For LPs, this translates into gender-action plans for their teams and for the funds they invest in. For fund managers, it means gender action plans for their teams and the companies they invest in. Gender needs to be mainstreamed rather than confined to impact initiatives.
I don’t say that gender should be a decisive criterion where investors reject a non-diverse fund manager or company. However, we can certainly advocate for a roadmap to build that missing diversity. While representation levels won’t change overnight, the collective will of institutional investors can kickstart meaningful progress. A great example is the Investor Leadership Network (ILN), a collective of institutional investors representing billions of dollars, advocating for sustainability and diversity in their investments.
WinPE today represents a collective of 30+ global and regional investing firms with billions of dollars in AUM, spearheading the transformation in the Indian PEVC ecosystem. These firms are continuously implementing incremental changes in their operations, policies, portfolios and teams to pursue an outcome oriented DEI agenda. And that I believe is an incredibly powerful force of change.
StartupTalky: How do your roles on investment committees influence your work with WinPE?
Ms. Garg: My roles on investment committees are an extension of the work I did in my last full-time role as an LP. They keep me abreast with market developments across various developing markets.
From WinPE’s perspective, these roles offer me a window into how the DEI conversation is progressing across different regions, how LPs are pushing the agenda and what challenges hinder these initiatives. Conversely, I use my industry knowledge in IC discussions, leading to cross-pollination since knowledge is fungible. However, my IC role is distinct and independent from my WinPE role; I don’t try to fit WinPE into IC discussions or vice versa.
While the knowledge is fungible, the agendas are completely independent.
StartupTalky: What advice do you have for female entrepreneurs looking to enter the investment field?
Ms. Garg: Entering the investment field is a genuinely interesting choice. It offers intellectual stimulation and constant learning and can be highly rewarding if you are willing to put in the necessary effort. It’s important to recognize that this isn’t a typical nine-to-five job; it is a demanding profession where success comes from passion, dedication and from truly enjoying the process.
For women to succeed in this industry, it’s essential to approach their careers with an understanding that the industry is still male dominated and therefore, role models may be difficult to find. You may have to carve your own path. It is not to say that it will be difficult – the industry has many men who strongly champion diversity and are great allies, sponsors and mentors. But the onus to reach out and gain support lies on the individual. It is an industry that rewards outperformance like none other so it is important to be proactive, grab opportunities, develop strong networks and build solid credentials.
Former head of enterprise software and AI investments at Venture Highway (now part of US-based General Catalyst) Aviral Bhatnagar has established an INR 100 crore fund to support early-stage Indian companies. He told a media outlet that the newly formed venture capital (VC) business AJVC’s fund would be sector neutral and just invest in pre-seed stage companies.
This news arrives as India is seeing the launch of a slew of new micro venture capital (VC) firms and domestic funds. Although they write smaller checks than more established VC companies, these investors support entrepreneurs from the very beginning. Micro VC funds, which are often smaller and concentrate on one partner, have emerged, increasing the diversity of risk capital investing in Indian entrepreneurs.
Additional well-established micro VCs include Better Capital, run by Vaibhav Domkundwar; Java Capital, which focuses on deep tech; Sauce VC, based in Delhi, which invests in the consumer sector; and Neon Fund, which focuses on business software and has a $25 million target.
Establishment of AJVC
The inspiration for AJVC came from Bhatnagar’s 2018 platform, A Junior VC, which he established to shed light on the startup and VC scene in India.
All of the firm’s efforts are directed at pre-seed investments. As a tech-driven, fast-moving, and approachable organisation, he predicted that an opportunity will arise to establish an institution that invests in pre-seed stages.
He stated that younger investment firms are finding more opportunity to take riskier bets as larger venture capital firms become more cautious when investing in startups.
A number of more established venture capital firms have begun to consider investments more in the vein of private equity, which opens the door for upstarts to take more calculated risks… “I strongly believe that innovation is here to stay,” Bhatnagar stated.
Future Business Operations
Funding for AJVC has come from family offices, wealthy individuals, and prominent Indian startup founders, according to Bhatnagar. Though he plans to start assembling a team in the future, Bhatnagar, who attended both the Indian Institute of Technology (IIT) in Bombay and the Indian Institute of Management (IIM) in Ahmedabad, has stated that for the time being he will operate the firm as a single partner.
Within the next three to four years, the venture capital firm—which has been approved as a category II alternative fund by the Securities and Exchange Board of India—plans to invest in more than 30 firms. While AJVC will initially only participate in pre-seed rounds, Bhatnagar did not rule out future rounds of follow-on funding in the event that the firm is successful.
Startups will be more appealing as an investment “Because of the elimination of angel tax and the rationalisation of long-term capital gains tax to 12.5% for unlisted securities,” Bhatnagar stated.
In this exclusive interaction with Neha Patil, Founder of ProGen Ventures, she shares her journey from working with startups in the UK to becoming an early-stage investor in India. She discusses ProGen’s focus on providing smart capital to innovative startups, emphasising the role of technology and sustainability. Patil also talks about how she identifies investment opportunities in India’s growing startup ecosystem. Additionally, she touches on the challenges she’s faced as a young woman in venture investing and how she is overcoming them.
StartupTalky: What motivated you to establish ProGen Ventures, and how did your background contribute to its foundation?
Ms. Patil: India is the 3rd largest startup ecosystem in the world. We are home to 100+ unicorns, 5000+ angel investors, 1400+ venture capitalists, and 1100+ private equity firms.
Since childhood, I have been an avid reader and have an innate curiosity about how things work. Coming from a business background, there was always a certain inquisitiveness around businesses, founders, growth, and capital. I spent 5 years in the UK, studying and working. I went to Imperial College London for my masters and Imperial has one of the finest startup incubators in the world. That’s where I started working closely with startups. That led to working at Mishipay (a global startup).
After coming back to India, I was impressed by the thriving ecosystem and started consulting startups. Soon, started investing in them and created a portfolio of 25 companies as an angel investor.
Having co-invested with some of the finest funds like Matrix Partners, Chiratae, Accel, and Angels like Deepinder Goyal, Kunal Bahl, and Kunal Shah, I have built a portfolio of 25 category creators across consumer, enterprise saas, fintech, and climate tech startups.
ProGen was incepted in 2024 January and we are working towards building an early-stage venture firm that provides smart capital to champion teams disrupting the status quo. There are plenty of venture firms in the country. The idea is to provide smart capital that goes beyond writing a cheque. Today, founders have access to capital but lack hands-on help to help them hire better, make smarter financial decisions, and build sustainable long-term businesses. We enable them by connecting them to domain experts in our network who help them create a faster growth engine in the process.
ProGen focuses on new-age startups that resonate with India’s 65% population that falls below the age of 35. We are investing in products, services, and technologies that enable this generation to shop better, live healthier and sustainably, work smarter, invest more, travel easier, and get access to know-how faster than ever before.
As an early-stage venture investor, I only invest in category creators that have the ability to own significant market share in the future and create smarter solutions for the new-age economy.
StartupTalky: What unique opportunities do you see in the Indian startup ecosystem that excite you?
Ms. Patil: India is at the cusp of incredible innovation not in one, two, or three sectors but in almost every single sector across the economy. Every space is ripe for disruption- From lending and wealth management for retail investors to kids’ products, wellness, and healthcare, logistics, healthcare, infrastructure, proptech, etc.
This allows for a wide array of opportunities to invest in. I am excited about the future of climate, retail, and commerce in the country.
StartupTalky: What are the key strategies and factors ProGen Ventures uses to identify and evaluate startups for investment?
Ms. Patil: We evaluate anywhere between 300-400 startups a year. Most of these are across sectors. We take a macroeconomic perspective to identify startups. A lot of research usually goes into identifying evolving consumer trends and needs across sectors.
For example, FirstCry is a phenomenal success story because India is one of the youngest economies in the world. Disposable income in each household has increased significantly. With both working parents, there is a growing awareness in terms of educational toys, conscious clothing for kids, nutrition for kids, etc. This has enabled FirstCry to scale and capture a significant market share.
ProGen’s investment thesis largely focuses on investing in solutions that are being built for an agile tomorrow.
StartupTalky: What is the typical process and timeline for a startup to secure investment from ProGen Ventures, and how can founders best prepare for it?
Ms. Patil: We take 2 weeks once founders share the necessary data to make a final decision.
At an early stage, we have limited data so the conviction is largely around founders, their authenticity, domain expertise, and ability to scale their startup.
StartupTalky: How does ProGen Ventures support its portfolio companies beyond just providing financial investment?
Ms. Patil: To reinstate, at ProGen we are staunch believers in smart capital. We have an expert network that consists of CXOs, founders, and business operators that help founders with real-time insights into the challenges they face in day-to-day operations.
For example, Adonmo Technologies wanted to expand to newer cities and we helped them acquire those cities 3 quarters earlier than planned. Zomato came in as their largest shareholder post our investment and they have been scaling up since then.
A food tech startup was having a tough time choosing their lead for the next round and we stepped in to help them get a term sheet that resonates with their core values and growth plans.
StartupTalky: Can you share some success stories of startups that ProGen Ventures has invested in and how they have evolved?
Ms. Patil: Most portfolio companies like Cureskin, Beco, OTO capital, Skye Air, BluSmart, and Boba Bhai have raised uprounds within 12-18 months of investing from some of the largest global and Indian funds like Qatar Insurance Authority, Matrix Partners, Temasek, Chiratae Ventures.
StartupTalky: How important is technology in the startups you invest in and what technological trends excite you the most?
Ms. Patil: All portfolio companies use technology as an enabler in everything that they do. I am really looking forward to startups building vertical tools and software using LLMs to enable seamless education, healthcare, commerce, and smart working solutions.
StartupTalky: ProGen Ventures emphasises sustainability. How do you ensure that the startups you invest in align with this value?
Ms. Patil: We are investing in climate-forward ideas and actively supporting startups in that space. Sustainable startups in the current portfolio are Beco, Infinity box, and BluSmart. All three are category leaders in their space and we are looking for more startups disrupting the status quo to enable a more sustainable future.
StartupTalky: What are ProGen Ventures’ plans for future expansion?
Ms. Patil: We are looking to invest in 12-15 startups this year, with an average ticket size of $100-150K. We focus on seed-stage investments.
StartupTalky: What unique challenges have you faced as one of the youngest venture investors, and how have you overcome them?
Ms. Patil: Venture investors historically have been associated with bald men, grey hair, seasoned entrepreneurs, and finance professionals. (Mostly men, 99% of the time).
I don’t fit those stereotypes. I have not exited a startup, I have not worked in finance for the past 15 years, and neither do I come from the investment banking space, and most distinctly, I am a woman. But I let the performance speak for itself.
I started venture investing at 27. At 30, I have a portfolio of 25 startups, most of these names have made it to top startups of the country and have some of the finest backers/investors like Zypp, BluSmart, OTO Capital, Beco, Cureskin, and Adonmo.
If you are bringing value to the table, that’s all that matters.
Reviews for Neha Patil’s Innovative Approach to Investing
StartupTalky: What advice would you give to aspiring entrepreneurs seeking investment?
Advice is a very strong term. I am still learning every day from founders and investors, but I think what has worked well for successful founders is more substance and less noise. Focus on building, and rest everything falls into place.
India’s startup ecosystem has been increasing in recent years, with a particular surge in ventures focused on artificial intelligence (AI). These startups are developing innovative solutions that have the potential to transform various industries.
However, building a successful AI-based startup requires a great idea, a talented team, and significant financial support. That’s where venture capital (VC) firms come in.
In this article, we’ll delve deeper into the top VC funds actively supporting India’s young AI startups, providing them with the necessary funding, mentorship, and resources to drive innovation and foster growth in the country’s tech landscape.
RTP Global – Top VC Fund Supporting India’s Young AI Startups
RTP Global has an inspiring history that spans over two decades and is a testament to the power of audacity and determination. The firm was founded by Leonid Boguslavsky, who placed a bold bet on the future of technology and innovation, which has paid off manifold. RTP Global is not just a venture capital firm; it embodies the spirit of entrepreneurship.
The firm’s vision is to identify and nurture visionary founders whose ideas have the potential to transform industries. RTP Global’s investment philosophy is based on swift decision-making, early-stage investments, and deep commitments to portfolio companies.
It is not just about making investments; it’s about forming long-term partnerships and standing by founders through the ups and downs of their entrepreneurial journeys.
Over the years, RTP Global has backed hundreds of founders who share its ambitious spirit. The firm’s portfolio includes some of the most successful tech companies of our time, such as Datadog, Delivery Hero, and Cred.
RTP Global’s unwavering support for its portfolio companies sets it apart from other venture capital firms. RTP Global has helped them achieve their goals and create lasting value by forging strong relationships with founders.
2. Endiya Partners
Founded By
Sateesh Andra, Ramesh Byrapaneni, and Abhishek Srivastava
Founded In
2015
Headquartered At
Hyderabad, India
Website
www.endiya.com
Endiya Partners – Top VC Fund Supporting India’s Young AI Startups
Endiya is a venture capital firm founded with a clear mission to support scalable product companies. The firm has remained steadfast in its commitment to identifying and backing exceptional entrepreneurs with transformative ideas since its inception. Endiya actively seeks entrepreneurs with deep technical expertise and a bold vision for innovation.
What sets Endiya apart from others is its focus on identifying and capitalizing a long-term, market-creating trends ahead of others. This approach is informed by the team’s extensive experience and industry know-how. The firm provides financial support, operational guidance, and strategic insights to its portfolio companies.
Moreover, Endiya’s hands-on approach to investing distinguishes it from other venture capital firms. The team prides itself on being operator VCs, seasoned entrepreneurs, and operators who leverage their collective expertise to partner actively with portfolio companies.
They work alongside founders as true partners and assist them with critical decisions around strategy, hiring, fundraising, and more.
An Explanation Guide for Startup Funding
3. Aeravti Ventures
Founded By
Ashish Sharma and Ashish Aggarwal
Founded In
2022
Headquartered At
Bangalore, India
Website
www.aeravti.com
Aeravti Ventures – Top VC Fund Supporting India’s Young AI Startups
Aeravti Ventures is a SEBI-registered Alternative Investment Fund that is dedicated to providing support to early-stage businesses that not only generate financial returns but also have a positive impact on industries, society, and the planet.
The firm is committed to investing in entrepreneurs who leverage deep technological expertise to build businesses driven by intellectual property. Through its investments, Aeravti Ventures is actively contributing to advancing technology and innovation, fostering growth and differentiation in the market.
The firm focuses on backing changemakers and pioneering deep, climate, and agri-tech solutions. It plays a crucial role in shaping industries and positively impacting society and the planet.
By backing early-stage businesses with a strong focus on innovation and sustainability, Aeravti Ventures is helping to create a brighter future for future generations.
With a team of experienced professionals passionate about supporting innovative businesses’ growth, the firm is committed to driving positive change and promoting long-term success for its portfolio companies.
pi Ventures – Top VC Fund Supporting India’s Young AI Startups
pi Ventures is a venture capital firm that focuses on helping entrepreneurs build innovative businesses in the DeepTech space. Their team, consisting of former entrepreneurs, understands the challenges startups face and provides funding, access to talent, and an ecosystem that encourages success.
They pride themselves on supporting disruptive companies with bold and innovative ideas that have the potential to change the world. One of their critical criteria for selecting startups is their ability to tackle significant and fundamental challenges on a global scale.
They encourage entrepreneurs to think beyond local markets and leverage their international network to build global companies. pi Ventures is particularly interested in supporting category leaders who are utilizing AI to differentiate themselves.
With the world shifting towards digital adoption and remote work, the firm believes that AI is at the second inflection point of its evolution. They are keen on identifying and investing in startups capitalizing on this trend, focusing on accelerating and emerging AI use cases across various industries and regions.
5. Together
Founded By
Girish Mathrubootham
Founded In
2021
Headquartered At
Bangalore, India
Website
www.together.fund
Together – Top VC Fund Supporting India’s Young AI Startups
The venture capital firm Together follows a founder-first approach and operates similarly to a tech startup. Its investment focus encompasses various sectors such as software-as-a-service (SaaS), enterprise software, developer tools, open-source software, cloud-native infrastructure, and API-first businesses.
The firm primarily invests in early-stage companies, spanning from seed to pre-Series A or Series A rounds, to guide and support founders during the crucial zero-to-one phase of their entrepreneurial journey.
The selection of sectors reflects the diverse expertise and backgrounds of its founding partners, who bring a wealth of industry experience.
These partners include Girish Mathrubootham, who co-founded Freshworks; Manav Garg, founder of Eka Software; Shubham Gupta, who formerly led SaaS deals at venture capital firm Matrix Partners India; and Avinash Raghava, founding volunteer at SaaSBOOMi and co-founder of iSPIRT.
6. Hyderabad Angels (HA)
Founded By
NA
Founded In
2012
Headquartered At
Hyderabad, India
Website
www.hyderabadangels.in
Hyderabad Angels (HA) – Top VC Fund Supporting India’s Young AI Startups
Hyderabad Angels (HA) has established itself as a prominent and reliable platform in India’s startup ecosystem. Since its inception in 2012, the organization has been dedicated to supporting and nurturing aspiring entrepreneurs by bridging the gap between them and established angel investors.
Over the years, HA has transformed into a dynamic force that invests in promising startups globally to create tangible and intangible value.
Even though HA is headquartered in Hyderabad, it operates across a wider geographical area, sourcing and investing in opportunities from different regions of India and overseas destinations such as the USA, UK, Singapore, and UAE.
Its global outlook enables it to tap into diverse markets and opportunities, fostering a rich innovation and growth ecosystem.
HA’s investor community comprises leading venture capitalists, seasoned entrepreneurs, and business leaders who bring their combined financial and business acumen to support the growth of Indian and global startups.
The organization firmly believes in building a symbiotic partnership between investors and entrepreneurs, where support for investee organizations becomes a cornerstone of their services.
The investors associated with HA are committed to providing financial assistance and offering guidance, mentorship, and networking opportunities to the startups in which they invest.
The Graph Shows the Number of AI Startups in India from May 2021 to May 2023
7. Arkam Ventures
Founded By
Rahul Chandra and Brij Bhasin
Founded In
2020
Headquartered At
Bangalore, India
Website
www.arkamvc.com
Arkam Ventures – Top VC Fund Supporting India’s Young AI Startups
Arkam Ventures is a venture capital firm committed to driving innovation in India by partnering with visionary founders who are passionate about creating a better future.
The company focuses on long-term investment strategies, often spanning multiple decades, to identify market trends, inflection points, and disruptive solutions that can potentially create large, scalable, and profitable market leaders.
The firm is driven by two central investment themes: massive market drivers, innovation-proof points, and clear opportunities for digital disruptors to reshape existing industries or create new ones.
One of these investment themes is Middle India Digitization, one of today’s most considerable global investment opportunities. This theme encompasses a significant shift towards digital transactions across essential categories that were non-existent just five years ago.
In addition to this, Arkam Ventures is also keen on supporting SaaS (Software as a Service) companies from India to the world. These companies leverage world-class product design, cost-effectiveness, and savvy go-to-market approaches to create innovative software solutions that can compete globally.
Grayscale Ventures – Top VC Fund Supporting India’s Young AI Startups
GRAYSCALE VENTURES is a prominent player in India’s venture capital landscape, specializing in providing Pre-Seed funding to startups with a dedicated focus on Developer Infrastructure.
The firm’s investment thesis revolves around Core and Vertical Infrastructure, DevTools, and AI infrastructure companies based in India, offering cheque sizes ranging from $300k to $1M.
A consortium of global tech founders and operators supports GRAYSCALE VENTURES. It operates as a collaborative force, actively leading rounds and co-building products with its portfolio companies.
The firm is headquartered in Bangalore, India. It is the country’s sole Developer Infrastructure-focused VC entity, managing $40M in assets under management (AUM). It primarily targets the founding stage (Pre-Seed/Seed) startups.
What sets GRAYSCALE VENTURES apart is its unwavering commitment to nurturing and growing the next generation of infrastructure startups in India. The firm’s mission is to provide the necessary resources and support to early-stage startups in India’s tech ecosystem to help them succeed in the long run.
GRAYSCALE VENTURES boasts a track record of successful investments in notable Dev Infra/SaaS startups from India, including Hasura, 100ms, and TestSigma.
Its robust financial backing is derived from global investors, including founders and operators from renowned companies such as Slack, Zendesk, Hasura, Freshworks, and Github, among its supporters.
9. CapFort Ventures
Founded By
Abhimanyu Bisht and Kavit Sutariya
Founded In
2023
Headquartered At
Gurgaon, India
Website
www.capfort.vc
CapFort Ventures – Top VC Fund Supporting India’s Young AI Startups
CapFort is a company that supports innovative and daring entrepreneurs who want to challenge the ordinary. The company believes that the most exciting and impactful ideas come from passionate and driven visionaries with a bold outlook for the future.
CapFort collaborates with these dynamic entrepreneurs, serving as a strategic partner in their journey toward building successful businesses. Beyond providing financial support, the company offers expertise and guidance to entrepreneurs, aiding them in navigating the challenges of entrepreneurship and realizing their visions.
As an integral part of India’s vibrant startup ecosystem, CapFort is dedicated to fueling its growth and success. The company draws inspiration from the trailblazing entrepreneurs it collaborates with, who constantly challenge conventions and strive to create positive change in the world.
CapFort remains committed to supporting these entrepreneurs at every stage of their journey, assisting them in achieving their goals and unlocking their full potential.
CapFort is led by Abhimanyu Bisht, former CEO of Venture Catalysts, who brings extensive experience in angel fund investment evaluation. The company is further strengthened by the expertise of Kavit Sutariya, founder of Hiraco Ventures.
With a portfolio spanning over 72 investments across various sectors and startup stages, Kavit Sutariya’s insights and leadership enhance CapFort’s ability to identify and nurture promising ventures.
10. Speciale Invest
Founded By
Vishesh Rajaram and Arjun Rao
Founded In
2016
Headquartered At
Chennai, India
Website
www.specialeinvest.com
Speciale Invest – Top VC Fund Supporting India’s Young AI Startups
Speciale Invest is a fund that invests in deep tech solutions and engineering innovation. They take a people-first approach and value visionaries who can articulate the strength and potential of their ideas effectively.
They invest in solutions that haven’t existed in the past and seek out exponential innovations that simplify and enhance the world.
Their investment strategy prioritizes founders with deep domain insights and a solid motivation to succeed. They typically invest between $100 to $500K in multi-disciplinary technologies such as Enterprise Software & SaaS and Frontier Tech.
Beyond capital, they offer their portfolio companies access to early customers, assistance with hiring early team members, support in raising follow-on capital, industry updates, and active partnership in the companies’ progress.
11. Equirus
Founded By
Ajit Deshmukh
Founded In
2007
Headquartered At
Mumbai, India
Website
www.equirus.com
Equirus – Top VC Fund Supporting India’s Young AI Startups
Equirus, pronounced as ek-wi-rus, derives its name from the idea that “Equities are us”, reflecting its deep commitment to financial markets. The firm’s philosophy, encapsulated by the Banyan Tree Philosophy, symbolizes its aspiration to foster an entrepreneurial organization where individual contributions flourish independently yet seamlessly integrate with the overarching mission.
Much like the aerial prop roots of a banyan tree, Equirus aims to thrive and endure over generations while providing strength and shelter to its ecosystem.
Throughout its journey, Equirus has gained an exceptional reputation and market standing across various domains, distinguishing itself for its proficiency in structuring and executing transactions tailored to meet clients’ needs.
Rooted in a set of core values, including client-centricity, integrity, trust, innovation, transparency, team spirit, and excellence in execution, Equirus remains steadfast in its commitment to achieving its vision.
Equirus’ vision is to become the most preferred Investment Bank by prioritizing focus, innovation, and trust. With a mission to deliver exceptional value and service to its clients, Equirus strives to uphold its reputation as a trusted partner in navigating the complexities of the financial landscape.
12. GOOD CAPITAL
Founded By
Arjun and Rohan Malhotra
Founded In
2019
Headquartered At
Delhi, India
Website
www.goodcapital.vc
Good Capital – Top VC Fund Supporting India’s Young AI Startups
GOOD CAPITAL is a venture capital firm, specializing in intermediary-led business models. They focus on using intermediaries to provide a high-touch, human interface to consumers, enhancing the overall consumer experience.
GOOD CAPITAL invests in startups from the concept stage to Series A, particularly interested in founders with practical knowledge and insights from their respective industries.
Although GOOD CAPITAL does not limit itself to any specific sector, the company prefers to invest in technology products that address India-centric problems. This approach reflects the firm’s dedication to supporting innovative solutions that can significantly impact the Indian market.
GOOD CAPITAL aims to promote visionary entrepreneurs and develop disruptive solutions that address the ever-changing needs of the Indian consumer landscape. By maintaining a diverse portfolio and being flexible in their investment strategy, the company strives to achieve its objectives.
India’s startup ecosystem is experiencing a remarkable surge, particularly in the field of artificial intelligence (AI), with numerous ventures poised to transform industries through innovation. The success of these startups hinges not only on groundbreaking ideas and talented teams but also on significant financial backing from venture capital (VC) firms.
As India continues to emerge as a hub for technological innovation, the collaborative efforts of these VC firms play a pivotal role in nurturing and propelling the next generation of AI startups toward success, driving positive change, and fostering sustainable growth in the country’s tech ecosystem.
FAQs
How many Unicorn startups are there in India?
It is stated that India is home to 112 Unicorns as of the start of 2024 as per the data shared by StartupTalky.
Which company invested in Zepto?
Zepto has raised its funding from multiple firms throughout its journey. Firms like StepStone Group, Goodwater Capital, Nexus Venture Partners, Glade Brook Capital, Lachy Groom, etc. are known to invest in Zepto.
Which startup sector is growing fast in India?
India has a wide range of opportunities for multiple startup sectors to rise. Some of the most common fastest-growing startup sectors in India are FinTech, EdTech, E-commerce, and artificial intelligence.
Does the Indian government provide funds for startups?
Yes, the Indian government provides multiple schemes and subsidiaries in order to provide financial aid to startups.
Alex Pall and Drew Taggart, widely known as “The Chainsmokers,” have achieved remarkable success in the fiercely competitive realm of electronic music. Forbes magazine crowned them the highest-paid electronic duo in 2019, a testament to their musical prowess, further underscored by their Grammy award, two American Music Awards, and seven Billboard Music Awards. Their meteoric rise to fame has been accompanied by the creation of a multifaceted empire that encompasses music, fashion, philanthropy, and more. Having solidified their standing in the music industry, the dynamic duo is now venturing into an entirely different domain – the high-stakes arena of venture capital.
They collaborated with entrepreneurs Milan Koch and Jeffrey Evans in 2020 and founded Mantis Venture Capital, focusing on supporting early-stage tech startups. Since its inception, Mantis VC has successfully secured over $110 million in funding, drawing investments from notable figures such as Mark Cuban, Keith Rabois, Jim Coulter, and Ron Conway. To date, Mantis VC has made strategic investments in nearly 200 groundbreaking companies spanning diverse industries, including healthcare, education, finance, and, naturally, music.
The Chainsmokers, characterized by the electronic production prowess of Drew Taggart and Alex Pall, weave together indie, dance, and pop to create a chart-topping sound, resulting in multiple multi-platinum singles.
Their journey commenced with the release of their official debut single in 2014 – the chart-topping dance hit “#Selfie,” offering a satirical take on the narcissism of the 2010s. Subsequent releases, such as “Roses” and the Grammy-winning “Don’t Let Me Down,” both achieved Top Ten pop status in 2016, each securing at least 5-times platinum certification. The summer of 2016 witnessed the ascent of “Closer,” featuring Halsey on vocals, holding the top spot for 12 weeks and eventually achieving a remarkable 12-times platinum status. In 2017, Taggart and Pall transitioned from their aggressive EDM style to incorporate more pop and indie rock influences, yet maintained their platinum status with hits like “Something Just Like This” featuring Coldplay.
Their full-length debut, “Memories: Do Not Open,” debuted at number one on the Billboard 200 in 2017. The subsequent years saw a consistent release of singles, culminating in the albums “Sick Boy” (2018) and “World War Joy” (2019). Notably, their soundtrack contribution to 2020’s “Words on Bathroom Walls” preceded another Top 40 hit in 2022 with “High” from their fourth set, “So Far So Good.” In 2023, they continued their collaborative efforts with artists like Cheyenne Giles, Bludnymph, and others.
This multifaceted journey showcases The Chainsmokers’ evolution from electronic music sensations to influential players in the venture capital landscape, illustrating their commitment to diversifying their impact across various industries.
The electronic duo has been actively involved in establishing Mantis Venture Capital since 2020. In the initial funding round, Alex Pall and Drew Taggart successfully secured $41 million, followed by an impressive $81 million in the subsequent round. Currently, they are setting their sights on surpassing these achievements with a third fund, concentrating on artificial intelligence and the evolution of Web 4.
Recognizing the power of fashion to connect with fans, The Chainsmokers launched their clothing line, Chainsmokers Merch, in 2016. The line offers a range of apparel and accessories, reflecting their signature style and appealing to their fashion-forward fanbase.
The Chainsmokers Website
Philanthropy
With their growing platform, The Chainsmokers have embraced philanthropy, using their influence to support various causes. They have established their foundation, The Chainsmokers Foundation, which focuses on empowering youth through education and music. They have also partnered with organizations such as Make-A-Wish Foundation and Pencils of Promise, demonstrating their commitment to giving back.
Brand Partnerships
The Chainsmokers’ popularity has made them attractive partners for brands seeking to connect with a younger demographic. They have collaborated with brands such as Spotify, Samsung, and BMW, showcasing their influence and appeal to a wider audience.
From Music to Startups to Venture: The Chainsmokers’ Journey to Mantis VC | 2023 Upfront Summit
Statistics that Highlight Their Impact
Over 53 million monthly listeners on Spotify
Over 25 billion streams on Spotify
Over 40 million records sold worldwide
Numerous awards, including a Grammy Award, an American Music Award, and a Billboard Music Award
Clothing line, Chainsmokers Merch, with a global reach
Established foundation, The Chainsmokers Foundation, supporting youth empowerment
Collaborations with major brands, including Spotify, Samsung, and BMW
The Chainsmokers have maintained a low profile regarding their investment endeavors, channeling their resources into fintech companies such as Trace Finance and Vise, steering clear of consumer-oriented brands. Despite owning a stake in Jaja Tequila, they have deliberately refrained from featuring in advertising campaigns or leveraging their substantial social media following to showcase their investments.
Insiders suggest that the duo’s intentional silence stems from their desire to establish a distinct brand for their business, one separate from their musical pursuits. They have chosen not to issue press releases, allowing the success of their investments to speak for itself. Rather than focusing on direct consumer engagement, they have dedicated their time to engaging with numerous investors.
Functioning in an advisory capacity, the duo has invested more than 10,000 hours comprehending the intricacies of the companies they collaborate with, involving tasks such as scrutinizing pitch decks, analyzing investments, and engaging with founders.
Beyond virtual platforms, the duo frequently engages in calls with engineers contemplating job offers at portfolio companies, leveraging their influence to support hiring efforts.
Alex Pall, aged 37, pursued studies in art history and music business at NYU, while Drew Taggart, aged 32, studied music at Syracuse University. Despite lacking a finance background, they have made noteworthy seed investments of approximately $250,000 in Ember, a coffee mug insulation company, and another investment in LoanSnap, a loan processing service.
In interviews, the duo has expressed admiration for “Margaritaville” singer Jimmy Buffett, citing him as an inspiration for seamlessly intertwining creativity and music writing with entrepreneurial understanding. Buffett’s incorporation of a hospitality company inspired by his song “Margaritaville” serves as a model, leading to the creation of merchandise, casinos, restaurants, and even a retirement community.
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.
Startups are the future of the business world. However, not all startups can climb the ladder of success. There are many reasons for the failure of startups. Some can fail due to an unclear concept of a startup. Some startups fail as they can’t attract their needed audience.
Irrespective of the failure, there are a few reasons which can eventually stop the successful startups also at limited growth. One of the biggest reasons is funds. Not having enough funds for the startup can also cause issues in the growth of startups. However, there are few venture capital firms providing funds to newly started startups. They work by providing funds and buying shares from early budding startups.
After some time, when the startup has already started climbing its success ladder, they take back their funds to invest in other companies but with the addition of profit earned from earlier investment. One of such firms is Lightspeed.
Lightspeed venture capital firm is a global company providing multi-stage investments to different field startups. Lightspeed focuses more on the investment in the field of enterprise technology, consumer, and healthcare industry. They have their services expanded to multiple countries and have a history of backing up more than 400 different firms.
Some of the startups funded by Lightspeed in India are:
Yellow Messenger is an AI-based company established in the year 2015 by the joint efforts of Jaya Kishore Reddy, Raghu Kumar, Rashid Khan, and Anik Das. It is a Bangalore-based startup.
Yellow Messenger is considered the world’s largest AI-sourced tool used for conversational engagement platforms. It is majorly used to provide the clients with multiple facilities such as marketing, servicing, acquiring and also enable them with the service of supporting customers on message and call.
Yellow Messenger helps its clients with things that circle enterprise intelligence and customized conversational bots. Yellow Messenger raised the series A funds from Lightspeed of about $4 million and $20 million in series B.
BlueLearn
Money Raised
Funding Round
$450k
Pre-Seed Round
Yes
Bluelearn Logo
BlueLearn is an educational-based platform founded in the year 2020 by the teamwork of Harish Uthayakumar and Shreyans Sancheti. It is also a Bangalore-based startup.
BlueLearn was earlier just a community on a Telegram. From there, it was converted into a different platform enabling the students to find everything in one place. BlueLearn is a one-place platform for students to learn new skills, network with peers, and also apply for internships. With the funds, they are planning to hire the best talents and grow their platform to fulfil the demands of their highly increasing customers. BlueLearn managed to raise the amount of $450k in its pre-seed funding round.
Magicpin is a reward-based application connecting hyperlocal merchants with several customers. It was started in the year 2016 by Anshoo Sharma and Brij Bhushan. Magicpin is a Gurgaon-based firm.
Magicpin is a reward-back platform. It allows its users to purchase products from several merchants available on its platform. Users get the tokens on the use of a Magicpin application for the purchasing of products or paying up the bills through its application. And all the merchants advertising them on its application need to pay the platform fee along with transaction fees to the Magicpin.
Craftsvilla
Money Raised
Funding Round
Lead Investor
$1.5 million
Series A
No
$34 million
Series C
No
Craftsvilla Logo
Craftsvilla is an Indian e-commerce platform launched in the year 2011 by Manoj Gupta. It is a Mumbai-based startup.
Craftsvilla is an e-commerce platform known for selling multiple products such as ethnic appraisal, footwear, handbags, etc. Craftsvilla is popular for its unique Indian product identity. They are known to also sell ethnic Indian products through their platform.
Lightspeed has backed up Craftsvilla from the start. There were multiple funds received from Lightspeed to Craftsvilla. Along with Lightspeed, different venture firms have also funded Craftsvilla each year. The most recent funds received by Craftsvilla from Lightspeed is about $1.5 million.
Darwinbox
Money Raised
Funding Round
Lead Investor
$4 million
Series A
Yes
Darwinbox Logo
Darwinbox company provides cloud-based human resources solutions to their clients. It was introduced in the year 2015 by Chaitanya Peddi, Jayant Palette, and Rohit Chennamaneni. It is a Hyderabad-based startup.
Drawinbox was initiated with the vision of creating a change in the interaction between the workforce and technology. It provides complete solutions from hire to retirement process. They are known to provide multiple services such as HR Voicebot, Advanced Talent Analytics, Candidate Shortlisting, OCR-based expense scans, etc.
Drawinbox also had its backed up by multiple capital ventures from the start itself. Drawinbox received $4 million as its first fund from Lightspeed and other ventures.
Lightspeed venture capital firm was established in the year 2000. They are known to provide funds to unique concepts and highly potent startups during the early years of startups. With this step, they can invest in a good source and allow the startup to bloom well. Some of the most well-known and famous startups funded by Lightspeed have been given above.
FAQ
Which are some of the successful companies backed up by Lightspeed in the past?
Lightspeed has supported many startups over time. Some of the most famous and well-known companies are Snapchat, Affirm, Byjus, OYO Rooms, etc.
Who are the founders of Lightspeed?
Lightspeed was founded in the year 2000 by Chris Schaepe, Barry Eggers, Ravi Mhatre, Peter Nieh.
What is meant by venture capital firms?
Venture Capital firms are those investors who provide funds to startups and newly opened small businesses as a part of the investment. They provide investments to the companies believed to have long-term growth potential and then receive their profits from the success of the business.
Company Profile is an initiative by StartupTalky to publish verified information on different startups and organizations. The content in this post has been approved by Sequoia Capital.
Sequoia Capital is an American venture capital firm. The firm is known to have backed companies that are now controlling $1.4 trillion of the total combined value of the stock market. Among the popular companies that Sequoia has invested in includes big names like Apple, Oracle, Youtube, Instagram, Zoom, Google, and more.
It has raised a record $19.2 Billion to support Indian and Southeast Asian start-ups.
Sequoia Capital is headquartered in Menlo Park, California, and mainly focuses on the technology industry. Sequoia seeks to invest in energy, financial, enterprise, healthcare, internet, and mobile startups.
9 August, 2021 – Sequoia Capital’s partial exit from the Indian merchant platform, Pine Labs has resulted in mopping up around $230M for the firm.
2 July, 2021 – Sequoia Capital unveils its fifth cohort of Surge, the accelerator program it has designed for India and Southeast Asia, where the company has named 23 early-age startups. Surge 05 has already raised around $55 million and is believed to be the largest cohort of the firm to date.
March 2021 – Sequoia Capital India closed a $195 Mn seed fund to support start-ups in the country. The firm has raised $195M to support Indian and Southeast Asian start-ups, more than double the amount invested in a two-year-old accelerator program.
October 2019 – Surge, the brainchild of Managing Director Shailendra Singh, began in 2019 with the aim of providing upstarts with $1 million to $2 million in upfront funding, as well as training and time with leading lights including Sequoia partner Michael Moritz and Stripe Inc. co-founder Patrick Collison. Since then, sixty-nine entrepreneurs from four phases have raised a total of $172M in funding, with 30 companies from the first three cohorts raising a total of $390M after completing the program.
Sequoia Capital – About & How It Works?
Sequoia Capital (an American venture firm) specializes in incubation, seed, start-up, early, development, emerging growth, mature, mid-venture, late-venture, and PIPE investments in private and public companies in the fintech field. The firm is interested in investing in a variety of industries, with a particular emphasis on oil, financial services, healthcare, the Internet, mobile, outsourcing, and technology.
Sequoia focuses on economies rather than individuals. Sequoia does not aim to build new markets, but rather to invest early in those that already exist. As a result, instead of concentrating on a founder’s credentials, they concentrate on market size and trends associated with a concept.
Sequoia Capital – Founder and History
Sequoia was founded by Don Valentine in 1972 in Menlo Park, California.
Don Valentine | Founder, Sequoia Capital
Valentine turned the company over to Doug Leone and Michael Moritz in the mid-1990s. Sequoia extended its activities to Israel in 1999. Sequoia Capital China, a subsidiary of the American firm, was established in 2005. Sequoia Capital bought an Indian venture capital company, Westbridge Capital Partners, in 2006. Sequoia Capital India was renamed later. Sequoia Capital was named the best venture capital company in 2013 by CB Insights. As of 2016, the company in the United States had 11 partners.
As the senior partner, Leone was in charge. Moritz remained an involved investment partner, but he relinquished his managerial responsibilities in 2012 after being diagnosed with an undisclosed illness that, he said, could reduce his quality of life over the next five to ten years.
In 2020, Sequoia set up its first European office in London, UK and hired Luciana Lixandru to lead it.
Sequoia Capital – Name, Logo and Tagline
Sequoia Capital Logo
Sequoia Capital logo is its name written in block letters and a green symbol next to it which symbolizes “organic” or “natural”.
Its tagline says, “We help the daring build legendary companies.“
Sequoia Capital – Mission and Vision
Sequoia’s mission statement is, “Sequoia exists to come through for people who put their trust in us. Our mission, our core values, and our definition of success are all based on helping you get the most out of your investment in people.“
Sequoia Capital – Business Model
Sequoia Capital is a stage-agnostic investor that has funded and sponsored over 1500 companies around the world, focusing primarily on technology and innovation. These firms now have a total stock market valuation of $1.4 trillion, thanks to Sequoia Capital’s financial funding and incubation.
Sequoia works with markets not people – Sequoia’s goal is not to develop new markets, but to capitalize on existing ones as soon as possible. As a result, instead of concentrating on a founder’s credentials, they concentrate on market size and trends associated with a concept.
Sequential market identification – They invest in complementary methods and software that will operate alongside the initial upcoming innovations and markets because they invest systematically.
Different, not better – Sequoia claims that being unconventional pays off, so they deliberately search out solutions that defy tradition in order to address future issues in more imaginative and successful ways.
Maximize top performers – Whereas many venture capital firms only establish short-term incubation partnerships, Sequoia has a track record of making long-term investments that capitalize on the growth of top-performing firms.
Partial funding – Sequoia does not provide businesses with all of the financing they need right away, preferring to partially finance companies in order to track founders’ performance from the start.
Cut businesses that don’t meet expectations -Don Valentine, the company’s founder, reports that Sequoia has closed about 0.5 per cent of businesses that aren’t hitting performance targets in order to reduce losses.
Software as a priority – Sequoia’s most recent investments have leaned heavily into tech, including SaaS, business software, and e-commerce and healthcare platforms.
US and China lead the way – The majority of Sequoia’s current investments are in the United States – mostly on the West Coast – and China, with India quickly becoming a solid investment market.
Sequoia Capital has made 1,623 investments. Their most recent investment was on 1 February, 2022, for $7M in Galaxy Fight Club.
Date
Organization Name
Round
Amount
February 1, 2022
Galaxy Fight Club
Seed Round
$7M
February 1, 2022
Island
Series A
$100M
January 31, 2022
Pennylane
Series B
$56.5M
January 26, 2022
CaptivateIQ
Series C
$100M
January 25, 2022
Prologue
Series A
$23M
January 19, 2022
Clari
Series F
$225M
January 18, 2022
Ironclad
Series E
$150M
January 13, 2022
Observable
Series B
$35.6M
January 11, 2022
Citadel securities
Venture
$1.2B
January 11, 2022
Bolt
Series F
$710M
August 5, 2021
Knowde
Series B
$72M
August 5, 2021
Statsig
Series A
$10.4M
August 2, 2021
Bolt
Series E
$705.72M
July 27, 2021
Fireblocks
Series D
$310M
July 27, 2021
Landis
Series A
$165M
July 20, 2021
FTX
Series B
$900M
July 20, 2021
Pomelo
Seed Round
$1M
July 16, 2021
Rappi
Series F
$500M
July 14, 2021
Acelerate
Series A
$14.4M
July 14, 2021
Entos
Series A
$53M
May 17, 2021
Moglix
Series E
$120M
May 3, 2021
Bibit.id
Venture Round
$65M
Apr 26, 2021
StashAway
Series D
$25M
Apr 20, 2021
Pristyn Care
Series D
$53M
Apr 19, 2021
Razorpay
Series E
$160M
Apr 15, 2021
Shipper
Series B
$63M
Apr 7, 2021
Groww
Series D
$83.51M
Mar 26, 2021
Five Star Business Finance
Private Equity Round
$234M
Mar 22, 2021
Purplle
Series D
$45M
Mar 16, 2021
Leap Finance
Series B
$17M
Sequoia has offloaded its shares worth $225-230 million, which it has further transferred to the new investors. This is the third time that Sequoia has offloaded shares from Pine Labs, which is really showing up to be one of the best bets of Sequoia among the B2B companies.
Because of the Covid-19 crisis, the company has faced the following challenges:
Drop-in market activity: Between December and February, the company’s growth rates dropped dramatically.
Supply chain disruptions – China’s unprecedented economic blockade is having a direct effect on global supply chains. Alternative suppliers may be needed by hardware, direct-to-consumer, and retailing companies. Pure tech companies are less vulnerable to supply chain disturbances, but they are also vulnerable due to economic cascading impacts.
Curtailment of travel and cancelled meetings: Company has banned all “non-essential” travelling.
Sequoia Capital – Future Plans
By cultivating relationships with global corporations and financial investors, the Strategic Development team aids Sequoia’s portfolio companies in planning and achieving their financial and strategic goals, such as establishing strategic alliances, raising money, and M&A. Sequoia Capital India has raised $1.35 billion from limited partners for two new funds, as the storied venture firm aims to expand its investments in the world’s second-largest internet market and Southeast Asia.
According to Shailendra Singh, a managing director at Sequoia Capital India, the two new funds – a $525M investment fund and an $825 million growth fund – will help the VC company, which operates in India and Southeast Asia through one arm, better serve the startup ecosystem in the country.
“A fundraise represents a massive responsibility to deliver attractive returns to Sequoia’s Limited Partners, the majority of which are nonprofits, foundations and charities. We do this by partnering with outstanding founders who are building category defining companies,” he said.
Sequoia Capital – FAQs
What is Sequoia Capital?
Sequoia Capital is an American venture capital firm. The firm is headquartered in Menlo Park, California and mainly focuses on the technology industry.
What are the top sectors sequoia capital invests in?
Sequoia Capital seeks to invest in all sectors with a focus on energy, financial, healthcare, Internet, mobile, outsourcing, and technology.
Who is the founder of Sequoia Capital?
Sequoia was founded by Don Valentine in 1972 in Menlo Park, California.
Who is the owner of Sequoia Capital?
Doug Leone and Michael Moritz owns the ventures capital firm.
Does Sequoia invest in seed?
Yes, Sequoia Capital invests in seed funding.
What stages of funding Sequoia Capital invests in?
Sequoia Capital invests in different investment stages:
Indian Startup Ecosystem is growing hugely. India stands third in global start-up ecosystem. With the changing trends in the Indian startup ecosystem, investors are getting attracted towards investing in startups. We founder Circle is a startup that provides investment service to help early stage startups.
Here is excerpt of the interview with Mr. Neeraj Tyagi, CEO & Co-founder of We Founder Circle (WFC) about Indian startup ecosystem.
Tell us briefly about yourself?
We Founder Circle (WFC), a founders-led early stage startup investment platform born in the midst of the pandemic, plans to invest in 70 start-ups in FY 2023. Since the launch in 2020, WFC has become one of the fastest-growing angel networks with 33+ startup investments in a span of 12 months. WFC has already facilitated funds worth $150 million across 33+ startups by the end of December 2021 and became the 2nd largest Angel Investor of the Country. Platform’s key investment includes Zypp, ObenEV, Lissun, Healthysure, Hesa, Glamyo Health, Geekster, YPay Card, EsportsXo and Settl.
In its first year of operation, We Founder Circle (WFC), a founder-led early-stage start-up investment platform, has successfully invested in 33+ start-ups spanning across 10 industries. Our community is strong by 2000 members that combines the extensive experience from angel investors, corporate leaders and unicorn founders. Our efforts were also recognized by the industry as we became #2 active Angel Investor Network in India. Our portfolio expanded to cover 10 sectors including EV, Agritech, Fintech, Edtech and D2C.
How often do you bet on the entrepreneurs and not on the ideas? And when/if you do that, what quality of the entrepreneur usually makes you do that?
An entrepreneur should be a high-energy, high-motivated individual. He or she should be on the move all of the time. At the same time, great degrees of commitment is required. A person can only do justice to his/her line of work if he/she is driven. Entrepreneurs are defined by their passion, resourcefulness, readiness to improvise and listen to others, and a strong desire to succeed.
What is a warning sign for you when investing in a startup?
1. Low quality products. Distinguishing oneself from the competition is a regular difficulty for any startup company. A company that is unable to deliver a high-quality or specialty product will most certainly be steamrolled by competitors that are already well-established.
2. Loss of vision. A good business plan detailing the targeted markets, as well as a vision statement stating how the market will be penetrated, are required for a company to survive.
3. A lack of progression. To thrive, a young firm needs rapid, yet scalable, growth. The reason is straightforward. There’s no guarantee that their loyal consumers will return the next day. It’s critical to seek out new ones as frequently as possible.
What are some common biases you find in the Indian Startup ecosystem?
Despite certain programmes aimed at promoting the growth of female entrepreneurs, there are still gender prejudices in the startup environment. Traditionally, India has shied away from professional risk and entrepreneurship. Though there has been a recent movement in young people’s attitudes, society still has a hard time accepting entrepreneurs. Instead of solving a consumer need with a fantastic product, the current generation is motivated to make money.
Failure is also looked down upon in today’s society. Being an entrepreneur is like sleeping on a bed of thorns in a country that despises hard work and failure. The majority of parents compel their children to work hard in order to acquire a stable career, and they view entrepreneurial efforts with suspicion. It is difficult to build a vibrant startup ecosystem in any country when the youth are not inspired to pursue their own companies.
What are your views on the SharkTankIndia Episodes until now?
We definitely think Shark Tank India is taking entrepreneurship to every Indian household and is making conversations around startups the new normal. The business reality show is giving a much needed boost to the burgeoning Indian startup ecosystem and comes across as a platform to transform dreams into reality for all the budding entrepreneurs.
We are seeing many startups exiting with IPO, what’s your opinion on that? How is it going to change the ecosystem?
Because of lockdowns and other safeguards, the Covid-19 epidemic has aided the technology startup sector by driving more transactions online.
Other factors include India having some of the world’s lowest data prices and an increase in smartphone ownership, which has allowed technological start-ups – many of which were created less than a decade ago – to reach a considerably broader audience. With a young population and internet penetration that is still well below its full potential, these businesses have a lot of room to develop.
Companies aim to use the capital from new proceeds to expand as demand in the post-pandemic world is predicted to increase by a factor of ten. Overall, this is a very encouraging indicator for the Indian economy’s future prospects.
More than 42 unicorns in 2021. What do you think caused this wave? Is the valuation justified according to you?
This year was a wonderful year for Indian businesses, with 42 achieving unicorn status. In 2021, more startups joined the club than in the previous five years combined. The record fundraising boom is projected to continue in the coming year, thanks to India’s increasing embrace of technology and new startup products. With only nine days left in the year, there’s a good chance we’ll see a few more surprises. It’s true that financing for 2021 is at an all-time high. The enormous number of unicorns, as well as a succession of successful IPOs, has piqued the curiosity of investors from all over the world.” I also credit India’s huge talent pool, quick technological adoption, and COVID-generated tailwinds for the increasing number of Indian enterprises making an impact on the global economy.
How can we support/ enable entrepreneurs in tier2 and tier 3 cities?
Close to 30% of our portfolio startups come from Tier 2-3 cities. We are big believers of ideas that are thought locally and aim to reach markets globally. In order to support these local entrepreneurs all we need is to build a strong startup ecosystem that offers co-working spaces, right mentors and angel investor networks, startup weekends and some business partnerships for these startups to grow.
What are a few sectors you think would be hot in the upcoming year?
For 2022, EV, Health Tech, D2C, Automobile Tech, Fintech, EdTech, Food Tech are going to be the hottest sectors. Keeping the same in mind, WFC is focused on start-ups in such sectors to help them grow.
One learning that you would like to share with founders who are looking to raise funds?
Always focus on your pitch and business model. Before approaching any investor, you should be thorough with the scope of your industry and start-up. The clearer your vision is, the better the impact on your investors.
Kinnary Nensee
