Indian Venture Capital firm, Kalaari Capital, has launched its accelerator program to empower early stage startups. Previously, the VC firm has backed 51 companies like Myntra, Power2SME, ScoopWhoop, Snapdeal etc and has done over 76 investments in these companies.
Talking on the same, Bala Srinivasa, partner at Kalaari Capital said, “We felt there’s a pretty big opportunity to create a brand new type of seed program that really offers people some broader choice than today. one of the big ones is around capital, so here it is structured around a convertible equity instrument as opposed to straight up equity.”
The VC firm has been investing in tech startups since 2006 and holds over $650 million in assets. It had launched a new fund in 2015 worth $290 million and that fund was used to invest in 14 tech startups.
Further, Bala quoted, “Because it’s pretty hard at the early stages for anyone to value a young seed company and we’ve gotten great feedback from people in terms of how they value this as young entrepreneurs because they can then build on top of that.”
Apart from investing in these early stage startups, the VC fund has also put in place a network of large companies like IBM and Google, which may opt to work with these companies. Bala stated that they are also focussing on building an ecosystem with partners like Google and IBM. They can give their seed companies tremendous acceleration in their growth curve, by helping them leverage technologies and capabilities that they wouldn’t find normally. And it’s kind of hard to put together the kind of partners.
The VC firm is planning to hold quarterly batches for shortlisting these early stage tech startups for its Kstart program. They’ll be selecting five startups, a few spots have already been filled, Bala stated in a statement. The firm has started accepting applications from today, their aim is to incubate 20 companies through its new venture ‘Respace’, located in Bangalore.