Frequently Asked Questions
Venture capital is a type of equity financing for small companies to raise funding before they start earning profits. Venture capital funds invest in high-risk/high-return profiles based on a company's size, assets, and stage of product development. They focus on early-stage investments with high-growth potential, risk, and long investment horizon. VC funds take an active role in their investments by providing guidance and often holding a board seat. They have a barbell approach to investing, making small bets on young startups to mitigate risk and reward a comparatively large payout.
VC engages in equity funding for start-ups and early-stage companies with high growth potential. Investors receive an equity stake through a security instrument. Common securities include convertible debt, SAFE notes, and preferred stock. VC firms use different securities depending on the nature of the investment.
Venture capital fundraising stages include seed, early-stage, and late-stage.
- Seed is the first official round of institutional funding and is typically given convertible notes, equity or preferred stock options.
- Early-stage is for companies in the development phase and is invested in rounds or series designated by letters.
- Late-stage funding is for mature companies that have proven growth and are generating revenue. If a company is successfully acquired or goes public, the firm makes a profit and distributes returns to limited partners.
Seed funding is funding for startups at the nascent stage. Investors provide initial investment, which business owners use into the business in exchange for return on investment. The return value may include a stake in their company or a share of profit.
Venture Capitalists connect entrepreneurs with the global business market, investing in ideas to transform industries. They help acquire funding when research funding ends, enabling innovators to move to the next stage. VCs take risks beyond traditional funding structures, finding private investors to back companies for millions, even if they don't make a profit. This allows entrepreneurs to grow a business's infrastructure from an innovative idea to a functioning company.
At our investment firm, we are passionate about working closely with entrepreneurs from the ideation stage and beyond. As they launch their products and begin to gain initial traction, we continue to develop our conviction in their vision and execution capabilities. We strongly believe that a synergistic combination of Market, Founder, Product, and Business is essential in our decision-making process when it comes to partnering with startups. By offering tailored guidance and strategic investment, we aim to support these driven and innovative individuals in bringing their visions to life and achieving superlative outcomes.
As investors, we believe in working closely with founders to provide the support they need to thrive. We offer financial, business, and operational support to help startups overcome unique challenges and drive growth. Our approach is built on decades of experience across various domains, which allows us to understand and solve problems at the grassroots level. We encourage startups to experiment and explore innovative solutions to achieve success, and we strive to build long-term relationships with our portfolio companies.
We have been investing in start-ups from 2016 pan India and in various sectors like Saas, Fintech, Hardware, Edtech, Blockchain, Consumer Tech, Media, Deeptech & Healthtech.
We understand the challenges and struggles faced by entrepreneurs and leverage our experience along with our network of mentors and advisors to add value beyond just capital. We like to work hands-on with our founders and back them in every stage of their journey.
Solutions For The Unsolved
We back companies that cater to the pressing needs, key challenges and core aspirations of 1.4 billion Indians in the world’s fastest growing large economy
Tech Driven Businesses
Technology is the foremost sustained growth driver in 21st century and we back entrepreneurs that leverage technology to serve large markets
Lean And Efficient Models
We invest in capital efficient and asset light businesses which utilize cash prudently to lay foundations of future revenue streams
Market Creation
Ventures creating new niches or disrupting old ones and first movers in blue ocean markets excite us
Passionate Entrepreneurs
We seek composed and driven individuals with a vision and resolve to build leading companies of tomorrow
Scalable And Profitable Ventures
We work with business well positioned to penetrate deep into domestic market, expand globally while having a clear path to profitability
Funding Access
Venture capital offers entrepreneurs access to funding, which can be challenging to find through traditional sources, as venture capitalists are willing to risk their money on unproven ideas.
Expert Guidance in Business
Venture capitalists offer more than just financial support; they can also offer valuable business expertise and connections to aid startup growth and success.
Long-Term Relationship
Venture capitalists typically offer long-term support to their portfolio companies, including additional funding, guidance, and access to a network of resources.
Minimize Risk
Venture capital, despite being a riskier financing method than traditional loans, can also lower the risk for entrepreneurs by allowing venture capitalists to benefit from the startup's success and support entrepreneurs during challenging times.
PR & Marketing
Venture capitalists can assist their portfolio companies in gaining exposure and publicity through their networks and connections.
Venture capital funds (VCFs) are regulated by the Securities and Exchange Board of India (Alternative Investment Funds) Regulations, 2012, which act as a financial middleman for emerging start-ups and small enterprises. VCFs invest primarily in unlisted stocks of Indian businesses, limited liability partnerships, new products, services, technology, or intellectual property-based businesses.
