Venture Capitalists for Startup​

For startups to grow, capital is required, which decides the initial success of the Startup. It has been observed that startups with significant investments are more prone to success.

Funding by one investor is never enough for the complexities faced in the early stages. Venture capitals come into play in such situations.

These firms invest money in small companies with a lot of potentials. Venture capital firms are the messiah that startups need to become a multi-billion-dollar company from a little idea.

Here we have listed a few top venture capital firms in India which you can consider while looking for investments.

What are venture capital firms?

When a group of investors creates a fund to invest in various businesses that are too risky for a bank to provide any loan, they are called a venture capital firm. As the enterprises are risky, the firm gives loans on the high-interest rate to the business.

Venture capital firm invests money in the potential business, and the company pays the loan in various ways. Sometimes the venture capital firm is given shares in the successful business that has expanded; sometimes the revenue generated by the firm is used to return the loan.

Sometimes the business is acquired by some conglomerate, and that money is used to pay back the venture capital firm. This is how venture capital firms work.

Here are some of the features of venture capital firms and the investments they make:

• It’s a high-risk investment that is made to make high-profits
• The investment made is usually based on long-term financial goals
• The investments are made in startups which have a high-growth potential
• The investment is made by buying equity shares in the startup firm
• Investments are usually made in innovative projects in the fields of technology & biotechnology

Process of Gaining Venture Capital Funding

The process of gaining venture capital funding from venture capital firms involves a lot of steps that have been mentioned down below. However, one also needs to keep in mind as to what kind of investments does a firm looks into to venture into the right venture capital firm. For example, a venture capital firm might be more interested in giving early-stage startups a chance while others might be interested more in acquiring startups.

The process of venture capital funding includes:

• The origination of deal
• Screening process
• Evaluation of firm and founders
• Deal negotiation
• Post investment activity
• Exit plan

Venture Capital Firms in India

1. TimesNext Gang

The platform has released its TimesNext Startup Accelerator Program under which it will be giving unique early-stage startups in their ideation and conception phase an opportunity to bag a startup funding of up to Rs 10 lacs.

If there is a plan to bring a disruption in the market and it is believe that the idea holds a high growth potential if provided with the right resources, TimesNext Gang is the place to be at. TimesNext will be disseminating a total amount of Rs 1 crore amongst a maximum of 25 young and innovative startups, giving them the financial boost to kickstart their journey.

The startup requirements to join the TimesNext Gang are:

• Must be in the initial stages of your startup
• Startup idea or concept must be unique, having a high growth potential if given the right monetary resources
• Have a small yet dedicated team of talented members

2. Sequoia Capital

Sequoia Capital is an American firm founded in 1972 by Don Valentine. Sequoia also has its operations in India and Israel. In 2005 Sequoia expanded to China and established Sequoia Capital China. In 2006 Westbridge Capital Partners was acquired by Sequoia Capital and later named Sequoia Capital India.

The firm invests mostly in the internet, health, and financial services. Its investments range from $1 million to $ 100 million depending on the stage of development of the business. The firm has successfully invested in Google, Apple, Paypal, Whatsapp, Just Dial, etc. The value of investments of the firm is $500 million to $ 1 billion.

A few of its top-funded startups include:

• DailyHunt
• Bira91
• 1mg
• Awfis

3. Helion Venture Partners

Helion Venture Partners was founded in 2006 by Rahul Chandra, Ashish Gupta, Sanjeev Aggarwal, and Kanwaljit Singh with its office in Bangalore and Gurgaon. The firm focuses on the Indian market and invests in businesses at their seed stage. The company has focused mostly on technology, but it also invests in environmental and education ventures.

The company has created funds of $140 million, $ 210 million, $255 million, and $300 million in 2006, 2008, 2012, and 2015 respectively. In 2012, Economic Times addressed the firm as the largest domestic venture capital firm. The company invests $10 million in a company with a revenue generation of less than $ 10 million in its early stage.

The company has invested money in ventures such as MakeMyTrip, YepMe, PubMatic, Red Bus, etc.

A few of its top-funded startups include:

• BigBasket
• BlueStacks
• RedBus
• Toppr

4. Accel Partners

Accel Partners or Accel is a venture capital firm based in America. It was founded in 1983 by Arthur Patterson and Jim Swartz. The company’s investment philosophy is based on the quote, “Chance Favors Prepared Minds.” The firm invests in information technology, the internet, mobile, media, and other domains. In 2001 Accel expanded its operations in London to enter the European market. In Europe, it invested in BlaBlaCar, Spotify, Supercell, etc.

The firm has raised $2 billion in 2016; it raised $450 million separately for the Indian market after raising $350 million in 2014. The firm has successfully invested in Flipkart, Baby Oye, Myntra, Book My Show, etc.

A few of its top-funded startups include:

• Swiggy
• Ola
• Blackbuck
• fit

5. Nexus Venture Partners

Nexus Venture Capital invests in new businesses in India and the USA. The company provides investment as well as team building and strategic guidance to its entrepreneurs. Nexus invests in business that can grow into standalone companies, new ideas, and large firms with potential for growth. The company spends $500k to $10 million in the early stages; the investors prefer seats on the board of the company spent. The firm does not believe in taking over the firm, they become a part of it.

The successful investments of the firm are Delhivery, Snapdeal, Komli, etc.

A few of its top-funded startups include:

• Zomato
• Snapdeal
• Delhivery
• Goodera

6. Intel Capital India

Intel Capital is a part of Intel Corporation; it invests in risky ventures which have the potential to become successful businesses. It was founded in 1991 by Avram Miller and Les Vadasz. It invests in hardware, software, data centre, and cloud domains. By 2012 Intel Capital has invested $12.5 billion in 1550 companies in 57 countries. Intel Capital has offices across the world including, Brazil, China, India, Germany, Ireland, etc. In total there are 26 offices in the world.

Intel Capital can invest from $1 million to $100 million depending on the venture. It has invested in companies like Hungama, Snapdeal, etc.

A few of its top-funded startups include:

• Yatra
• Hungama
• Helpshift
• Indiamart

7. Blume Ventures

Blume Ventures is an Indian based venture capital firm that invests in Digital media, Mobile, and internet services. Blume Ventures was established in 2010 and is located in Mumbai. It can provide funding of 100 crores for 2.5 years. It has successfully invested in Exotel, Printo, etc.

It has won designated 2nd seed investor by Economic times, Number one Active investor by CB Insights, and many more.

A few of its top-funded startups include:

• Unacademy
• Grey Orange
• Dunzo
• Purplle

8. IDG India Ventures

IDG ventures or International Data Group was established in 1996 in California. In the 2000s, IDG spread its operation across India, Vietnam, and Korea. IDG had funds in Europe, although it currently does nor operates there. In 2017, IDG Capital acquired the International Data Group.

The company provides investments of $1 million to $10 million. IDG Ventures is worth $4 billion today. Its successful investments in India are Yatra.com, Myntra, Ozone, etc.

A few of its top-funded startups include:

• Nestaway
• Manthan
• Myntra
• Newgen

9. SAIF Partners

SAIF Partners is a venture capital firm based in Asia. It has offices across Asia, such as Hong Kong, China, and India. It was founded in 2001 as the Softbank Asia Infrastructure Fund. It raised $400 million with Cisco and Softbank being the only partners. The members of Softbank Asia Infrastructure started SAIF capital in 2004.

SAIF has offices in Beijing, Xiamen, Hefei, and many other cities across China. The company invests in Consumer, Education, Finance, Healthcare, Industrials, Internet, IT Services, Logistics, Mobile, SaaS, etc.

In India, SAIF has offices in Bengaluru and Gurugram. It has successfully invested in BookMyShow, Just Dial, Paytm, Home Shop 18, Make my trip, etc. It raised a fund of $350 million for Indian Investments. It invests $5 million to $ 35 million in the early stages of the company.

A few of its top-funded startups include:

• BookMyShow
• ClearTax
• FabAlley
• FirstCry

Reference/Citation/Source

• Top 10 Venture Capital Firms + 50 Most Active Venture Capitalists in India

https://timesnext.com/top-10-venture-capital-firm-in-india/