Venture capital funds are currently in a robust position, with significant “dry powder” ready for deployment, a trend that has been substantiated by data from the past three years. This availability of capital is a testament to the continued investor confidence in the Indian story, and the potential for startups with strong business models to secure the necessary funding for growth.
For instance:
Omnivore raised $150 million for its 3rd fund
Chiratae closed a ?1,001 crore growth fund
Bold Capital raised $25 million for early-stage SaaS
Lightspeed raised $500 million dedicated to India/SEA
Fireside Fund III is $225 million
Blume Fund IV is $250 million
Artha Select is a $55 million VC fund
(This list isn’t exhaustive. Drop a comment if you want access to full google sheet)
Domestic VCs have been able to capture a majority of the investments into Indian startups despite stiff competition from global VCs.
This is an opportune time for founders to showcase their business models, value propositions, and growth potential to secure the necessary capital to scale their ventures. As an entrepreneur or an aspiring founder, it’s important to recognise this window of opportunity and leverage the investor confidence that exists in the market.
While it’s often said that founders should have domain expertise before starting up, it could be beneficial for venture capitalists to also have startup expertise. Founders might consider reaching out to operator/founder turned VCs for their early stage rounds. By acknowledging and capitalizing on these positive trends, we can collectively contribute to an environment conducive to innovation and growth.