{"id":4229,"date":"2017-03-12T08:49:59","date_gmt":"2017-03-12T08:49:59","guid":{"rendered":"https:\/\/sunkrish.com\/?p=4229"},"modified":"2017-03-12T15:06:49","modified_gmt":"2017-03-12T15:06:49","slug":"smaller-vc-firms-ride-on-sidbi-and-local-investors","status":"publish","type":"post","link":"https:\/\/sunkrish.com\/index.php\/2017\/03\/12\/smaller-vc-firms-ride-on-sidbi-and-local-investors\/","title":{"rendered":"Smaller VC firms ride on SIDBI and local investors"},"content":{"rendered":"<div><a href=\"https:\/\/sunkrish.com\/index.php\/2017\/03\/12\/smaller-vc-firms-ride-on-sidbi-and-local-investors\/sidbi\/\" rel=\"attachment wp-att-4238\"><img loading=\"lazy\" decoding=\"async\" class=\"alignleft size-full wp-image-4238\" src=\"https:\/\/sunkrish.com\/wp-content\/uploads\/2017\/03\/SIDBI.jpg\" alt=\"\" width=\"259\" height=\"194\" \/><\/a>In the past six months, several venture capital (VCs) funds have raised money or are in the process of raising money. These include funds from IDG Ventures, DSG Consumer Partners, Orios Venture Partners, Kae Capital, Blume Ventures, Saama Capital, Fireside Ventures, Stellaris Venture Partners, Endiya Partners and Pravega Ventures.<\/div>\n<p><span class=\"p-content\">\u00a0<\/span><\/p>\n<div>What\u2019s common between them is Sidbi, the lending institution managing several start-up funds, including the government\u2019s, which plays an anchor investor to many of these funds with a 15-20 per cent stake. This is helping these funds raise money from other domestic investors \u2014 family offices and high networth individuals (HNIs).<\/div>\n<p><span class=\"p-content\">\u00a0<\/span><\/p>\n<div>\u2018\u2018Fundraising is not easy, especially for smaller VC firms. They don\u2019t get large institutional investors; they get family offices and HNIs,\u201d says a VC. Having an institution like Sidbi comforts other local investors.<\/div>\n<div id=\"div-gpt-ad-1485163331364-0\" data-google-query-id=\"CLaUofDG0NICFYeJaAodF-ADCA\">\n<div id=\"google_ads_iframe_\/6516239\/outofpage_1x1_desktop_0__container__\"><iframe id=\"google_ads_iframe_\/6516239\/outofpage_1x1_desktop_0\" title=\"3rd party ad content\" name=\"google_ads_iframe_\/6516239\/outofpage_1x1_desktop_0\" width=\"1\" height=\"1\" frameborder=\"0\" marginwidth=\"0\" marginheight=\"0\" scrolling=\"no\" data-mce-fragment=\"1\"><\/iframe><\/div>\n<\/div>\n<p><span class=\"p-content\">\u00a0<\/span><\/p>\n<div>\u2018\u2018Sidbi does extensive amount of due-diligence, reporting, appoints board members. They have a proper investment committee. So, you have comfort that there&#8217;s institutional due-diligence on the fund,\u201d says Rehan Yar Khan, managing partner, Orios Venture Partners.<\/div>\n<p><span class=\"p-content\">\u00a0<\/span><\/p>\n<div>In February, Sidbi said its fund of funds operations has sanctioned Rs 1,112 crore to 30 funds in FY17, double of Rs 607 crore for 16 funds it did in FY16. Sidbi manages many fund of funds, including the government\u2019s Rs 10,000-crore fund of funds for start-ups.<\/div>\n<p><span class=\"p-content\">\u00a0<\/span><\/p>\n<div>The funds, which have received Sidbi\u2019s commitment under this programme, are Orios Venture Partners Fund II (Rs 50 crore), Kae Capital (Rs 45 crore), and two little known funds, Saha Trust (Rs 10 crore) and Kitven Fund III (Rs 5 crore), Sidbi disclosed in response to an RTI query from Business Standard. There are others like Blume Ventures, IDG Ventures, India Quotient, which have received Sidbi\u2019s funding.<\/div>\n<p><span class=\"p-content\">\u00a0<\/span><\/p>\n<div>Interestingly, several funds \u2014 maiden funds and second funds \u2014 have hit the market in the past one year, all targeting domestic investors. Yet, all of them are able to raise money and announced their first or final close, which shows the increasing depth of domestic investors.<\/div>\n<p><span class=\"p-content\">\u00a0<\/span><\/p>\n<div>These include professionals in large firms, like Infosys founders, who have made money through ESOPs, family offices of traditional business families and others which are starting to get organised.<\/div>\n<p><span class=\"p-content\">\u00a0<\/span><\/p>\n<div>Many wealth management and advisory firms have come up, who are able to reach these family offices in a more effective way. \u00a0But are we seeing too many funds raising too much capital?<\/div>\n<p><span class=\"p-content\">\u00a0<\/span><\/p>\n<div>\u2018\u2018There\u2019s a big need for early stage capital. In the US, the size of the VC market is $25-26 billion and the seed capital of $22 billion. As opposed to that, we are at a pittance. The game has not even started here,\u201d says another VC. Besides, bigger VC firms like Accel, Sequoia also do seed-stage deals, but mostly do VC.<\/div>\n<p><a href=\"https:\/\/sunkrish.com\/index.php\/2017\/03\/12\/smaller-vc-firms-ride-on-sidbi-and-local-investors\/funds-by-sidbi\/\" rel=\"attachment wp-att-4235\"><img loading=\"lazy\" decoding=\"async\" class=\"size-medium wp-image-4235 aligncenter\" src=\"https:\/\/sunkrish.com\/wp-content\/uploads\/2017\/03\/Funds-by-SIDBI-300x198.jpg\" alt=\"\" width=\"300\" height=\"198\" srcset=\"https:\/\/sunkrish.com\/wp-content\/uploads\/2017\/03\/Funds-by-SIDBI-300x198.jpg 300w, https:\/\/sunkrish.com\/wp-content\/uploads\/2017\/03\/Funds-by-SIDBI-600x396.jpg 600w, https:\/\/sunkrish.com\/wp-content\/uploads\/2017\/03\/Funds-by-SIDBI.jpg 620w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/><\/a>Source: <a href=\"http:\/\/www.business-standard.com\/article\/economy-policy\/smaller-vc-firms-ride-on-sidbi-and-local-investors-117030900003_1.html\" target=\"_blank\">http:\/\/www.business-standard.com\/article\/economy-policy\/smaller-vc-firms-ride-on-sidbi-and-local-investors-117030900003_1.html<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>In the past six months, several venture capital (VCs) funds have raised money or are in the process of raising money. These include funds from IDG Ventures, DSG Consumer Partners, Orios Venture Partners, Kae Capital, Blume Ventures, Saama Capital, Fireside &hellip; <a href=\"https:\/\/sunkrish.com\/index.php\/2017\/03\/12\/smaller-vc-firms-ride-on-sidbi-and-local-investors\/\">Continued<\/a><\/p>\n","protected":false},"author":1,"featured_media":4238,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[15,4,493],"tags":[357,332,311,305,331,294,324,609,301,353],"class_list":["post-4229","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-corporate-business-advisory-services","category-financial-corporate-services","category-economy-business-updates-corporate-affairs","tag-angel-investment","tag-capital","tag-corporate","tag-economy","tag-fund-raising","tag-investment","tag-securities-and-exchange-board-of-india-sebi","tag-small-industries-development-bank-of-india-sidbi","tag-start-ups","tag-venture-capital"],"_links":{"self":[{"href":"https:\/\/sunkrish.com\/index.php\/wp-json\/wp\/v2\/posts\/4229","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/sunkrish.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/sunkrish.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/sunkrish.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/sunkrish.com\/index.php\/wp-json\/wp\/v2\/comments?post=4229"}],"version-history":[{"count":6,"href":"https:\/\/sunkrish.com\/index.php\/wp-json\/wp\/v2\/posts\/4229\/revisions"}],"predecessor-version":[{"id":4241,"href":"https:\/\/sunkrish.com\/index.php\/wp-json\/wp\/v2\/posts\/4229\/revisions\/4241"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/sunkrish.com\/index.php\/wp-json\/wp\/v2\/media\/4238"}],"wp:attachment":[{"href":"https:\/\/sunkrish.com\/index.php\/wp-json\/wp\/v2\/media?parent=4229"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/sunkrish.com\/index.php\/wp-json\/wp\/v2\/categories?post=4229"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/sunkrish.com\/index.php\/wp-json\/wp\/v2\/tags?post=4229"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}