Silicon Valley’s Mobile Industry Accelerator, Tandem Capital recently announced its third early stage fund, Habit Fund III to fuel up next three startups viz. Shoptimize, AcceptPay & PocketZoom, as reported by TechCrunch. It is a $100 million fund, a much higher than $32 million raised last year. Although, the amount of funding to each startup is not clear, Tandem usually invests $200k in each mobile startup and works as a mentor for initial 6 months period.
Shopitamize is a Pune based 9 months old startup, that helps merchants in emerging markets to make mobile commerce platforms. It provides its products catalogs online and also help the companies with the digital marketing involving social media, SEO, and payments processing. Tandem is said to take a 15% to 20% stake in the startup with this deal.
While, AcceptPay is a US based cash-on-delivery platform to support e-commerce in cash-centric economies, PacketZoom on the other hand is startup working on providing Dramatically Faster Cloud Access For Mobile Apps.
Tandem, started by technology entrepreneurs Sunil Bhargava and Doug Renert, the third fund involves investors such as Manipal Education and Medical Group CEO Ranjan Pai and the company’s chief advisor T V Mohandas Pai. As per the reports, about $25 million will be kept aside to invest in about 80 to 90 early-stage investments over the fund lifecycle, while the remaining capital will be utilized in making follow on investments in portfolio companies.
Tandem Habit I, set up in 2007, was a $12 million fund, which invested in around 9 companies. The fund took exit from 8 ventures while continued to invest in mobile game developer PlayHaven, which raised $8 million last year. It also invested in pune based Quadnode. The second fund was launched in late 2010 involving Bangalore based gaming portal Bash Gaming in its portfolio. Apart from Silicon Valley, it also has office in Bangalore India.
With India getting ahead in becoming one of the largest mobile and smartphone markets globally, the mobile ecosystem is currently providing growth to the domestic players at a very fast pace. Also, it possess much sought untapped potential for the upcoming players. The funding initiatives like this, can thus bring a lot to gain in this sector, both for the investors and the entrepreneurs.