Unicorn India Ventures, a SEBI registered VC fund, has closed Rs 40 crore out of a total of Rs 100 crore fund. The funds will be used to invest in early stage startups working in segments like social media, mobi-tech, analytics, cloud tech and IOT.
The venture was started by Anil Joshi and Bhaskar Majumdar and aims to empower the startup culture in India. Prior to this, Anil was heading operations at Mumbai Angels and Bangalore Angels, also Bhaskar has worked in senior corporate positions with Times of India, Zee Telefilms and Altavista UK.
Talking about the venture Anil said, “We want to be a partner in their journey towards growth and use our resources financial and otherwise to help them scale up. We want to bring best-of-breed international experiences to the start-ups.”
The venture has been structured as a hybrid fund whose first investment will enable start-ups with seed round in the range of Rs 50 lakh to a crore, which would help companies build businesses and get ready for next round (Series A) where the fund will also participate as a co-investor.
Unicorn India Ventures claims to have raised funds from a new class of investors, people who were keen on investing but they never had the experience to do so. Bhaskar in a statement stated that the ratio of traditional investors to new ones is the same.
Globally, HNIs and other investors deploy 5 to 8 % of their portfolio in start-ups. In India, this trend is beginning to gather momentum and a new class of investors is increasingly showing interest to invest in start-ups through institutional funds.
He further added, “We expect HNIs and new investors to deploy at least 5% of their total asset portfolio in start-ups here.”
The fund plans to invest in a total of 10-12 startups in a year and wants to create a portfolio of 30 companies in next three years. The partners will give 2-3 months to understand the startup, it’s working and founders/co-founders, also other aspects like potential to scale up, global reach of the company etc. The partners cleared that they won’t be getting involved in day to day activities of the startups.