Some of the businesses are to make predictions, which is tougher than you can think. There is a trend to spot a pattern and predict future functionalities and success. The job of the Venture Capital (VC) executives is to spot the trend and invest in aspiring and growing startups.
For example, Flipkart wouldn’t have been this successful in India if someone at Accel Partners had not believed in them. There are certain risky calls which are to be made. Similarly, Venture Capital is a high stakes job. These firms are rewarded for the making the right risky calls for uplifting the startups, on the other hand, failure isn’t taken kindly in this field as it will hamper the complete VC business and their investments.
What is Venture Capital?
Venture capital is a private equity and a firm of providing finance to startups and small businesses that are believed to have long-term growth potential. Venture capital comprises of successful investors, investment banks and other financial institutions who provide assistance to the new businesses.
On the contrary, they do not always assist in a monetary form, there is even technical or managerial expertise which can be provided. It can be a little risky for investors who invest funds and their skills in the new business.
For newbies or startups in the industry who have limited operating history and have just started developing their skills, venture capital funding business is increasingly becoming a popular and essential source for raising capital. The main advantage is that the investors get equity in the company and a say in the company's decisions.
List of Top VC firms in India
India is a hub of growing startups, several talented new-age entrepreneurs are looking forward to the establishment of their companies. Venture Capital business has a wide range of scope in investing the startups and giving chances to the upcoming young minds who can do wonders with the technology.
Accel Partners is one of the oldest venture capital companies in India who is involved in the startup ecosystem for almost more than three decades. Its headquarter is in California, this firm has backed and supported several hundreds of companies and focuses primarily on internet technology companies.
The investment limitations in Accel Partners range from $500K to $50 Million depending on the design of the new-age startups. The investment domain of Accel Partners is mainly Infrastructure, Mobile & Software, Internet and Consumer Services. Startups like Myntra, BookMyShow, Freshdesk, Flipkart etc were supported and funded by this firm.
Kalaari Capital is one of the trusted venture capital firm in India which came into existence in 2006. It primarily invested in technology-based startups, small businesses or firms in their early stage.
Kalaari Capital firm also provides a reliable advisory board with investment funds to assist young entrepreneurs with business solutions. They mostly invest in the domain like the Internet, ECommerce, Curated Web and so on.
Instamojo, Snapdeal, ScoopWhoop, Urban Ladder, and plenty others were the firms who were backed by Kalaari Capital financially.
Sequoia Capital India
Sequoia Capital India, which was founded in 2000, generally specializes in startup investments early, mid, late, expansion, public and growth stage of the companies. Sequoia Capital invests around $100,000 - $1 Million in seed-stage and ranges between $1 Million - $10 Million in an early stage. And $10 Million - $100 Million in the growth stage of the companies.
It deals in the Consumer industry, Energy, Financial sector, Healthcare services, Outsourcing, Technology and many new ideas. They funded several Startups such as JustDial, Knowlarity, Practo, iYogi.
Jungle Ventures is a Singapore based company and helps startups scale across the Asia Pacific with the funds. It has spread across the globe invests in startups that are solving problems relevant to Asia Pacific markets. It deals in investments in the US, Singapore, India, Australia, Thailand, Malaysia, and the Philippines.
The Startups backed and funded are Zipdial, Ekstop, Pokkt and Milaap. Dealing in sectors like Ecommerce, Digital Media, Saas, Big Data, Analytics, Finance.
Blume Ventures is a Venture capital firm which was founded in 2010. Its advisor funds early-staged startups, pre-series A, Series B and late-stage investments companies. Blume backs startups with both fundings as well as active support.
Blume Ventures provides funding investments between $50000 to $3,00,000 in the seed stage. It also provides investments to portfolio companies ranging between $.5 Million - $1.5 Million. The main Industries are Telecommunications Equipment, Data Infrastructure, Software Sectors, Consumer, Media & Entertainment, Research and Development.
Chiratae Ventures, which was initially known as IDG Ventures India, is a name that goes well with the venture capital space in India. They have been established and possess the experience of around 15-18 years in startup funding with a portfolio of over 200 companies.
They deal in various sectors like Mobile and Network, Engineering, Media, Technology and Health. The company's investment bracket ranges between $1 million - $10 million. They have backed several Startups and funded them, to name a few are FirstCry, Yatra, Lenskart, Myntra, Zivame, etc
Matrix Partners, founded in 1977, is a US-based venture capital firm focusing on venture capital investments. It focuses on investing in seed and early-stage startups.
The firm follows the philosophy of Founders First which means they not only invest capital in high-growth potential companies but also help them in sectors like human resources, strategic partnerships etc. It focuses on Sectors like Entertainment and Media, Consumer, Internet, SaaS, E-commerce etc. There are several startups which were funded are Limeroad, Housejoy, Ola, mSwipe etc.
India is the most famous in VC firms as it is the land of startups, in recent and upcoming years. An idea that develops into a business plan and goes through all the initial stages of establishing itself, needs investors to support it and help the business gain momentum and stability. There are several venture capitalists available in India to support entrepreneurs.