Startup companies need a certain amount of investment for growth. Wealthy investors like to invest their capital in businesses with a long-term growth perspective. 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 such companies and becomes a financial partner in the business.
The top 10 most active Venture Capitals alone contributed to 32% of the total deal count. Venture Capital investment is also referred to as risk capital or patient risk capital, as it includes the risk of losing the money if the venture doesn’t succeed and takes a medium to long term period for the investments to fructify. The overall funding secured by Indian startups was over $3.2 Billion across 193 deals.
Methods of Venture capital financing:
- Equity
- Participating debentures
- Conditional loan
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.
Features of Venture Capital Investments
1. Sequoia Capital
2. Accel
3. Blume Ventures
4. SAIF Partners
5. Tiger Global Management
6. Kalaari Capital
7. Matrix Partners
8. Nexus Venture Partners
9. India Angel Network
10. Omidyar Network India
FAQs
Features of Venture Capital Investments
- High-risk investment
- High Tech projects
- Participation in Management
- Length of Investment
- Illiquid Investment
1. Sequoia Capital
Sequoia Capital is an American venture capital firm. Sequoia invests in both public and private companies. Sequoia Capital has invested in over 1000 companies since 1972, including . It is mainly focused on the technology industry. It has assets worth $5.4 Billion under management in India and it is spread across seven funds.
This VC firm holds a program called the Surge to mentor and invest in companies across Southeast Asia, including India. In 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.
| Founder | Donald T. Valentine |
| Deals | 245 |
| Notable Investments | Apple, Google, Oracle, Nvidia, GitHub, PayPal, LinkedIn, Stripe, Bird, YouTube, Instagram, Yahoo!, PicsArt, Klarna, and WhatsApp |
| Key Sectors | Agnostic |
| Stage | Early Stage Venture, Late Stage Venture, Seed |
| Website | www.sequoiacap.com |
2. Accel
Accel, formerly known as Accel Partners, is an American venture capital firm. Accel has raised $550 Million for its sixth India fund to boost up its investments in the country’s startup ecosystem. It has closed nearly six funds in India. In 2016, Accel had closed its $450 Mn fund through which it invested in Flipkart and Swiggy. The firm’s growth capital investments focus on more developed companies that require a larger amount of capital to expand their business.
Accel is a venture capital firm that concentrates on the following technology sectors:
- Consumer
- Infrastructure
- Media
- Mobile
- SaaS
- Security
- Customer care services
- Enterprise software
- E-commerce
| Founder | Jim Swartz, Arthur Patterson |
| Deals | 232 |
| Notable Investments | Freshworks, Swiggy, BlackBuck, Bounce, BookMyShow, Flipkart |
| Key Sectors | Agnostic |
| Stage | Early Stage Venture, Late Stage Venture, Seed |
| Subsidiaries | ACCEL PARTNERS LIMITED, Accel Partners Management LLP |
| Website | www.accel.com |
3. Blume Ventures
Blume Ventures is an early stage and seed stage tech-focused venture fund. The company launched its first micro-VC fund in 2011, becoming the first institutionalized early-stage investor at that time. Blume Ventures raises $41 Million opportunity fund, fund is designed to invest in best performing portfolio companies. From this fund, Blume has invested in Series B to D rounds of firms like Unacademy and Servify. The company had nearly three other funds the last one is $102 Million before the COVID-19 pandemic in India. The VC firm has nearly $225 Million total capital under management.
| Founder | Karthik and Sanjay |
| Deals | 124 |
| Notable Investments | Dunzo, Unacademy, Instamojo, Procol, HealthAssure, Milkbasket |
| Key Sectors | Agnostic |
| Stage | Early Stage Venture, Seed |
| Website | www.blume.vc |
Vibhavari Madki
4. SAIF Partners
SAIF Partners is a stage and sector agnostic private equity firm in Asia and has $4 Billion in the capital. The firm has offices in Hong Kong, China, and India. SAIF Partners was started as Softbank Asia Infrastructure Fund in 2001 with a $400 Million fund where Cisco Systems and Softbank Group were the sole limited partner. In India, the SAIF Partner has offices in Bengaluru and Gurugram. SAIF Partners doubles the investment in Indian firms 2020 into new segments like edtech, health tech enterprise software-as-a-service (SaaS), entertainment, and direct-to-consumer startups.
| Founder | Andrew Yan |
| Deals | 100 |
| Notable Investments | Capital Float, Firstcry, Swiggy, IndustryBuying, Aye Finance, Rivigo, Cleartax |
| Key Sectors | Agnostic |
| Stage | Stage Agnostic, Private Equity |
| Website | www.elevationcapital.com |
5. Tiger Global Management
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 one of the most global investors in Indian startups has started investments of around $300 Million. It has backed 13 companies, including a $90 Million round in agri-tech startup Ninjacart and a $60 Million infusion in B2B industrial goods marketplace Moglix.
The company is said to have invested in nearly 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 nearly 97 startups. It had last invested $100 Million along with other investors in payments gateway Razorpay, and unicorn club. In the first half of 2019, Tiger Global Management has invested nearly $300 Million in India across 13 companies.
| Founder | Julian Robertson |
| Deals | 97 |
| Notable Investments | Urban Company, Flipkart, Moglix, OPEN, Ninjacart, Razorpay |
| Key Sectors | nternet, Software, Consumer, Financial Technology |
| Stage | Growth, Late Stage, Private Equity, Post- IPO |
| Website | www.tigerglobal.com |
6. Kalaari Capital
Kalaari Capital, founded in 2011 in Bengaluru by Vani Kola. It focuses on technology-related companies in India. Till now It has made nearly 92 investments across 3 funds and leading to nearly 15 exits from companies like Myntra and Snapdeal. It has also made a partial exit from Zivame. Kalaari Capital manages $650 Million funds with a strong advisory team in Bangalore investing in early-stage. They are 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.
| Founder | Vani Kola |
| Deals | 92 |
| Notable Investments | Cashkaro, Cure.fit, WinZO, Jumbotail, Milkbasket, Myntra, Snapdeal |
| Key Sectors | Agnostic |
| Stage | Early Stage |
| Website | www.kalaari.com |
Rishita Jain
7. Matrix Partners
Matrix Partners is a US-based private equity investment firm focusing on venture capital investments. The firm invests in seed and early-stage companies in the United States and India. It mainly focus 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 $4 Bn as an asset under management (AUM). The company has invested in nearly 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. The company had closed its last India-focused fund at $300 Mn in January 2019, eight years after it raised its second fund.
| Founder | Paul Ferri |
| Deals | 80 |
| Notable Investments | Avail Finance, Vogo, DailyNinja, Stanza Living, MoEngage |
| Key Sectors | Agnostic |
| Stage | Early Stage Venture, Seed |
| Website | www.matrixpartners.com |
8. Nexus Venture Partners
Nexus Venture Partners was founded in 2006. Silicon Valley and Mumbai-based venture capital firm Nexus Venture Partners have raised fresh funds for its $450 Million fifth fund. According to the SEC filings, the firm has raised an additional $38.5 Million from three new investors. 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 about $1.2 Billion in assets under management after its fourth fund closed at $450 Million concluded in 2015.
The firm has invested in over 100 startups such as Zomato, Snapdeal, Delhivery, Goodera, etc. Its successful exits include Gluster, Gitter, ElasticBox, MapMyIndia among others.
| Founder | Sandeep Singhal |
| Deals | 80 |
| Notable Investments | WhiteHat Jr, Delhivery, Rapido, Unacademy, Druva, Jumbotail, Bolo App, Pratilipi, Zomato |
| Key Sectors | Agnostic |
| Stage | Early Stage Venture, Seed |
| Website | www.nexusvp.com |
9. India Angel Network
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, 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. It also runs a VC fund that has raised over $33.2 Million since its inception in 2017.
| Founder | Saurabh Srivastava, Padmaja Ruparel, Raman Roy |
| Deals | 80 |
| Notable Investments | WebEngage, Wow! Momo, Druva, Box8, Faballey, Little Black Book |
| Key Sectors | Agnostic |
| Stage | Early Stage, Seed |
| Website | www.indianangelnetwork.com |
Ashwini
10. Omidyar Network India
Omidyar Network India was founded in 2004. Omidyar Network India is an investment firm focussed 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. It started ReSolve Initiative which will 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.
| Founder | Pierre Omidyar |
| Deals | 71 |
| Notable Investments | Dailyhunt, Indifi Technologies, 1mg, Needslist, Bounce, Platzi, Pratilipi, Healthkart, Doubtnut, ZestMoney, WhiteHat Education Technology |
| Key Sectors | Agnostic |
| Stage | Early Stage, Seed Stage |
| Website | www.omidyarnetwork.in |
FAQs
How many venture capital firms are there in India?
There are over 800 venture capital firms in India.
What are the top venture capital firms in India?
- Sequoia Capital
- Accel
- Blume Ventures
- SAIF Partners
- Tiger Global Management
- Kalaari Capital
- Matrix Partners
- Nexus Venture Partners
- India Angel Network
- Omidyar Network India
Author: Souvik Dey
Source : https://startuptalky.com/top-venture-capital-firms-india/
Date : 2021-06-04T12:58:00.000Z