Early-stage micro VC firm Trillion Dollar Ventures launches second fund of Rs 50 crore

Trillion Dollar Ventures (TDV), an early-stage-focused micro venture capital firm, has launched its second fund with a total corpus of Rs 50 crore.

The new fund, which targets pre-seed and seed-stage startups, represents a doubling of its initial fund size.

TDV, founded in 2021 by Ujwal Sutaria, aims to nurture tech-driven businesses and invest in innovative founders.

Investment strategy and target sectors

The newly launched fund will invest Rs 1-2 crore per startup, primarily supporting businesses with platform-based models, marketplaces, and exchange businesses. The fund is focused on backing startups within the consumer tech (B2C) sectors such as fintech, gaming, spirituality-tech, the creator economy, social media, and consumer upgrades.

TDV's investment strategy places a strong emphasis on serial entrepreneurs and founders with deep domain expertise, preferring high-tech and low-operation businesses that demonstrate growth potential.

Commitments from global partners

TDV has already garnered substantial interest and commitments from limited partners (LPs) across several countries, including India, the US, UK, UAE, and Singapore. These LPs include prominent unicorn founders, family offices, and CXOs from various industries. 

“We want to back startups with potential of Trillion Dollar outcomes as our name reflects our genesis of backing startups. We believe in taking non consensus bets which is where a fund makes the alpha," said Ujwal Sutaria, Founder and General Partner at TDV.

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Fund lifecycle and performance metrics

Unlike traditional venture capital funds that often have a lifecycle of 10-12 years, TDV’s second fund has a shorter cycle of 5-7 years, allowing for faster returns to its investors. TDV expects to make 10-12 investments annually, beginning in the third quarter of the 2024-25 financial year.

“Our proven track record with the last fund has encouraged us to double the target corpus with the second fund and increase the average investment size, too," Sutaria said.

The first fund provided exit opportunities within two years of investment, generating an internal rate of return (IRR) of over 60% and achieving a multiple on invested capital (MOIC) of three within two and a half years. 

"We are confident of continuing our track record with the new fund as well,” he added.

What is Multiple on invested capital?

Multiple on invested capital (MOIC) is a metric used to measure the performance of an investment relative to its initial cost. It's a key metric used in private equity to assess the success of an investment and compare the performance of different investments.

MOIC is calculated by dividing the total value of all shares in a fund by the initial investment. The total value includes both realized and unrealized value.