The Startup ecosystem is growing at a very fast rate in India. The number of startups increases by 17% every year. Even amid the pandemic in 2020, there was a flow of around $10 million in venture capital investments. Even Startups with great ideas tend to fail because of inadequate funds according to the statistics.
Money is extremely important for any business to run smoothly, when a business has attained consistent growth it needs funding to scale. Earlier only banks and other sources were available for financing now Angel investors and Venture capital firms (VCs) provide funding to businesses as well which is more reliable.
If I Have to simplify it, startups at their nascent stage and with potential need finances to grow and they cannot acquire those finances from the public, so rich financial giants help startups with finances.
Venture Capital funds are funds that are invested by financial giants and entrepreneurs known as Venture Capitalists. The funds here are invested in early-stage startups that show the potential to develop and grow into a profitable businesses.
There are over 650 VCs that are funding early-stage startups. VCs are acknowledged by SEBI and are considered to be the most suitable form of financing for early-stage businesses and startups wanting a huge capital investment.
1. India Angel Network
Founded by Padmaja Ruparel IAN is a SEBI registered network of Angel Investors who are keen to invest in small businesses and startups with great ideas they bring investors and entrepreneurs from around the world, they invest in early-stage startups and ventures where they see potential.
In 2017, the club already had 450 members from 11 countries. T The organization has made investments in businesses such as PregBuddy and SuperProfs. Padmaja Ruparel, one of its founders, was named to Fortune’s (magazine’s) list of The Most Powerful Women in India in 2018.
On November 8th, 2020, the Indian Angel Network (IAN) announced a collaboration with the Bangladesh Angels Network (BAN). The goal is to collaborate in sourcing, cross-referring, and promoting links in technology-enabled companies in India and Bangladesh to build an enabling environment for venture financing in both ecosystems.
Notable Investments are WebEngage, Wow! Momo, Druva, Box8, Faballey, Little Black Book. They have more than 470 investors under its management. They invest in companies with an average ticket size of about $400K-$600K, and exit in a three-five year period through a strategic sale. It also runs a VC fund, which has raised $33.2 Mn till now.
2. Blume Ventures
Blume Ventures is an early-stage and seed-stage venture capital fund based in Mumbai, Maharashtra, India. The organization was established in 2010 as a venture capital firm to improve startup finance in India.
Founded by Karthik Reddy and Sanjay Nath, the VC aimed to bridge the gap between angel investors and larger institutional investors. Notable investments of the company are Dunzo, Unacademy, Instamojo, Procol, HealthAssure, and Milkbasket.
It is a tech-based venture The company launched its first micro-VC fund in 2011, becoming the first institutionalized early-stage investor at that time.
Blume Ventures acquired a $41 million opportunity fund in 2020, making it one of the most significant domestic opportunity funds among Indian venture capital firms focused on investing in high-performing portfolio companies. The company has nearly three other funds, the last one closing at $102 Mn right before the pandemic hit India. The VC firm has nearly $225 Mn in total capital.
3. Sequoia Capital
Sequoia Capital, headquartered in Menlo Park, California, is an American venture capital firm. Sequoia Capital makes investments in both public and private firms. Since 1972, Sequoia Capital has invested in over 1000 firms, including Apple, Google, Oracle, Nvidia, Github, and others. It is mostly focused on the technology industry.
Notable investments are with BYJU’S, Bira 91, OYO, Khatabook, Rupeek, Meesho, and CRED They finance Early Stage Venture, Late Stage Venture, and Seed stages. Sequoia Capital is an American venture capital firm, based in Menlo Park, California. they have a worth of $5.4 Bn under management in India, alone, spread across seven funds.
The VC firm also holds an accelerator program called the Surge to mentor and invest in companies across Southeast Asia, including India. Every six months, Sequoia shortlists 15 to 20 startups and provides a capital investment of $1 Mn to $2 Mn with participation from other investors. By the IVCA’s report, Sequoia Capital invested in the highest number of start-ups in 2020.
It has closed its second seed fund at $195 million on March 25, 2021, under its 16-week accelerator funding program Surge. It mainly invests in Healthcare, Consumer Internet, Financial Sector, and Technology sector. they have 4 funds with 45 investments and 5 exits.
4. Nexus Venture Partners
Nexus Venture Partners was established in 2006 as a venture capital firm. Nexus Venture Partners is the first India-US venture capital firm established in Silicon Valley and Mumbai. The organization has grown to be a well-known venture capital firm, assisting a variety of companies in raising financing, including WhiteHat Jr., Rapido, Delhivery, Zomato, and others.
With an average ticket size of $500K-$10 Million, the firm invests in early-growth stage firms. In its initial fund, the company raised $100 million.
The company’s notable investments are WhiteHat Jr, Delhivery, Rapido, Unacademy, Druva, Jumbotail, Bolo App, Pratilipi, Zomato, etc with total deals:80. They invest in small businesses in their early stages.
The company also participates in follow-up investment rounds at later stages. The firm had raised $100 Mn in its first funding round and closed its fifth fund at $450 Mn in May 2019. The company has 254 investments with 113 lead investments and 36 exits.
5. Accel Partners
Accel, formerly known as Accel Partners, is a venture capital firm based in Palo Alto, California, United States. The corporation has offices in Palo Alto and San Francisco, as well as operates in India, China, and London. Accel has invested in a variety of notable startups throughout the years, including Facebook, Flipkart, Atlassian, Slack, Spotify, Etsy, and others.
Their notable investments are In 2016 Flipkart and Swiggy by $450 million. The most recent investment in India was on January 27, 2021, when VenWiz raised $3 million. By now it has made around 1,556 investments and has made 311 exits lead investments 605, and funding 29.
Accel now manages more than $1.6 billion in assets. In India, it has closed approximately six funds. Flipkart, Swiggy, Blackbuck, Cure. fit and other Indian companies are among those funded by the corporation. Growth capital investments of the firm are concentrated in better mature enterprises that require a higher amount of capital to expand their operations.
Steadview Capital Management is a Hong Kong-based venture capital firm that was launched in 2009. Steadview Capital invests in companies in their early and growth stages. Steadview Capital solely invests in eCommerce businesses.
The company invests in early-stage ventures and later-stage ventures. It has invested in Indian unicorn start-up companies like Dream11, Nykaa, Ola, Unacademy, Policybazaar, Zomato, and Lenskart. In December 2020 Steadview invested $660 million in the series J funding round.
Flipkart, Ola Cabs, Saavn, and Urban Ladder are among the top startups funded by venture capital firms.
7. Kalaari Capital
Vani Kola started Kalaari Capital in Bengaluru in 2006. It focuses on Indian technological companies. It has made more than 92 investments across three funds to date, with more than 15 exits from firms such as Myntra and Snapdeal. It has also taken a step back from Zivame.
Kalaari Capital is in charge of $650 million in assets. It has a robust advisory staff in Bangalore that invests in the early stages. Kalaari is enthusiastic about investing in entrepreneurs who have the potential to become tomorrow’s global leaders.
This firm raised $290 million in 2015, which was the largest fund raised by an Indian venture capital firm at the time.
8. Matrix Partners
Matrix Partners is a venture capital-focused private equity investment firm based in the United States. In the United States and India, the firm invests in seed and early-stage firms. It primarily focuses on the software, communications, semiconductors, data storage, Internet, and wireless industries.
Matrix owns stakes in Apple, Alteon WebSystems, and Office Club. It is believed to manage approximately $4 billion in assets. With its second fund, the business has invested in over 549 enterprises around the world.
Not only do they invest capital in high-growth potential companies but also help them in important fields like hiring, strategy, partnerships, etc. Their list of investments includes Ola, Practo, Dailyhunt, Mawipe, Five-star business finance, Treebo, Limeroad, Razorpay, Zip loan, Ofbusiness, etc. Its exit has shopclues, justdial, testbook.com.
In April 2021 it has invested $110 million in Ofbusiness. Its other recent investment includes Antwalk and Crijo. Fun, OZiva, Captain Fresh, Vogo, Saveo, etc. The company has over 129 investments with a lead of 65 and 9 exits.
9. Elevation Capital (SAIF Partners)
Elevation Capital formerly known as SAIF rebranded on October 20, 2020. It is an Asian private equity fund that is stage and sector-neutral. The company is based in Gurugram, Haryana, India, and it intends to make small investments in seed-stage, early-stage, and later-stage enterprises.
Elevation Capital (previously known as SAIF Partners) was founded in 2001 as the Softbank Asia Infrastructure Fund (SAIF) with a $400 million fund in which Cisco Systems and Softbank Group were the sole limited partners.
The VC is One of the most successful firms in India since 2001. The Company manages 400 Crores USD worth of assets. With headquarters in China and India, SAIF invests in startups from seed capital to high-growth capital.
Notable investments include Capital Float, Firstcry, IndustryBuying, Aye Finance, Rivigo, Cleartax, Just Dial, MakeMyTrip, Meesho, Paytm, ShareChat, Swiggy, and more. The company is said to have $4 Bn in capital. Elevation Capital has over 420 investments and 51 exits.
10. Omidyar Network India
Omidyar Network India was established in 2004. Omidyar Network India is a social impact investment firm. The company seeks to invest in startups that are assisting in the development of more equal and fair societies for the benefit of all.
It makes grants to NGOs in areas such as digital identification, education, new technology, financial services, and others. The corporation launched the ReSolve Initiative, which aims to invest in developing solutions for two long-standing issues: MSMEs and migrant labor.
It has spent more than $300 million in India’s startup environment. In addition, the corporation has agreed to invest an extra $350 million over the next five years. The social impact investment firm also hopes to reach 500 million people with this investment.
11. Tiger Global Management
Tiger Global Management LLC is an investment business focused on public and private firms in the global Internet, software, consumer, and financial technology sectors. The goal is to achieve world-class long-term investment returns.
It creates a one-of-a-kind worldwide investing platform. They make investments in high-quality firms that benefit from long-term growth trends and are managed by strong management teams.
They generally invest in technology, telecom, media consumer, and industrial sectors and they fund, Growth, Late Stage, Private Equity, Post- IPO. The company is said to have invested in nearly 442 companies across the globe with 7 designated funds.
Tiger Global Management raised $50 million in Zenoti. Some notable investments done by VC firms are Urban Company, Flipkart, Moglix, OPEN, Ninjacart, Razorpay, etc.
12. BlinC Invest
BLINC Invest is a Mumbai-based Venture Capital firm founded in 2014, the VC invests in Ed-tech and Fintech startups.
BlinC Invest raised $13 million in a single venture fund, an alternative investment fund. This fund was announced on April 19, 2021, and it raised a total of $13 million. On June 16, 2021, BlinC Invest invested in Vital. This investment – Seed Round – Vital – was worth $219 million.
BLinC Invest announced the formation of a SEBI-registered Category-II Alternative Investment Fund (AIF) with a fund size of Rs 100 crore and the first closing of Rs 30 crore. The fund will complete its final close before the end of the year.
13. Venture East
Venture East is investing since 1997 founded by Sarath Naru and is the longest-serving VC firm in India. The company is looking after $325 million-plus investments in companies in the IT sector and scientifically based startups.
Venture East has invested in more than 70 startups and the number is expected to only increase in the coming future. the company provides Financial Services, Digital Healthcare, Consumer-driven & Retail, Pharma & Life SciencesStartups Funded – eYANTRA, Portea, Goli Vada Pao, etc
14. Chiratae Ventures
Founded by TCM Sundaram and Sudhir Sethi They are a famous and trusted name among all Indian ventures with more than 15 years of experience in this field, they invest in Mobile, Engineering, Media & technology and Health-Tech, etc niches.
They have funded over 200 companies to date notable investments include First Cry, Yatra, Lenskart, Myntra, Zivame, etc. Their investment bracket falls between $1 million to $10 million.
Chiratae Ventures has invested in 114 companies. Pyxis One raised $17 million on September 15, 2021, their most recent investment.
The VC firm has made seven investments in diversity. SquadStack raised $5 million in diversity funding on September 29, 2020.
It has 36 exits to its credit. Shazam Entertainment, EverString, and Flyrobe are some of Chiratae Ventures’ most prominent exits.
15. 3one4 Capital
3one4 Funding is a Bangalore-based early-stage venture capital business.
The firm’s key areas include machine-driven actionable intelligence services for the enterprise, enterprise automation, consumer products, finance, media, multilingual content development, and health.
The venture capital business oversees a corpus of $110Million and a portfolio of 50+ early-stage investments.
3one4 has made investments in companies such as Licious, Betterplace, Open, ToneTag, DarwinBox, Faircent, Bugworks, YourStory, Tripoto, Licious, and Tracxn.
16. Helion Venture Partners.
Helion Advisors Pvt. Ltd. (Helion Venture Partners) is a Mauritius-based Indian-focused venture capital firm with headquarters in Bengaluru which was founded in 2006.
The VC firm makes investments in high-growth technology-driven enterprises and consumer services.
Helion Venture Partners has raised a total of $519 million across two funds, the most recent of which being Fund IV. This fund was announced on April 16, 2015, and it raised $300 million.
The firm has invested in 139 companies. Slintel raised $1.5 million with their most recent investment on December 12, 2019.
Helion Venture Partners has made five investments in diversity. Slintel raised $1.5 million in diversity funding on December 12, 2019.
The venture capital firm has 31 exits. BigBasket, Simplilearn, and ShopClues are among Helion Venture Partners’ significant exits.
17. Mumbai Angels Network
Mumbai Angels Network (The MA Network), founded in 2006, is India’s primary investment platform focused on investing in emerging enterprises. Currently, the venture investing platform has a portfolio of 160+ companies with 25 exits.
Mumbai Angels were one of the investors in defense tech firm Big Bang Boom Solutions in the third quarter, investing $1.5 million in the Series A investment round. Myntra, Purplle, InMobi, and Dhruva Space are among the firms that have received funding from the investing platform.
Gameeon’s most recent investment was on September 9, 2021, when they raised $320K.
The company has made four investments in diversity. Their most recent diversity investment occurred on January 1, 2019, when the Exclusively funded Mumbai Angels Network had 25 exits. Myntra, BabyChakra and NowFloats are among the most famous exits from Mumbai Angels Network.
The Mumbai-based venture capital organization offers startups INR 2.5 million in seed money. 100X. VC is the first venture capital firm to use India SAFE (India Simple Agreement for Future Equity) Notes to invest in early-stage firms.
In the third quarter, the VC firm engaged in nine capital agreements, including investments in seed-stage firms from a variety of industries, including Mindpeers, BatteryPool, and Pracify.
VC has made 31 investments. FilterPixel raised 2.5M on September 24, 2021, their most recent investments.