Active Venture Capital Firms in India for Startups

India is gaining popularity as the land of startups, more so in recent years. Typically, an idea that develops into a business plan and goes through the initial stages of launching itself, needs investors to back it and help the business gain momentum. There are many venture capitalists (VCs) available and it can be both confusing and intimidating for budding entrepreneurs to find and approach a VC. Let’s look at a few venture capital firms that are actively backing innovative and promising startup business in India. Please note that this list is in no specific order.

Helion Venture Partners

Helion was founded in 2006 as an early to mid-stage. It is an India-focused venture fund with over $600 million under management.

Sequoia Capital India

Sequoia Capital was founded in 1972 and has been highly active in the Indian startup market since the early 2000s with an investment of around $100 million in the growth stages of startups alone.

Nexus Venture Partners

Nexus Venture Partners believe in investing in the early stages of a company. Their investment size ranges from USD 500K to 10 million in early-growth stage companies. They also like to participate in follow-on investments at later stages for companies that successfully execute their business plans.

Kalaari Capital

Founded in 2006, Kalaari Capital is a technology-focused venture capital firm with over $650 million in assets under management.

Handy tips before approaching a venture capital firm

A good business idea will always find backers but it is not that simple when you approach a venture capital firm.

• Answer these questions before you strategize your approach:
  1. Has the firm invested in your market earlier?
  2. Do they make investments at the stage where your business is right now (early, middle or late)?
  3. Can the size of the fund meet your requirement?
  4. How does the firm determine eligibility for investment – what are the criteria?
• Make a list of investors and strike off those who don’t meet your requirements
• Make your first pitch to the investor who is least likely to invest. Ask for feedback and incorporate it into your pitch. Keep pitching till your pitch is phenomenal. Remember: Pitch to the most likely investor last.
• Spend some time to understand the venture capital market. If you can align your pitch to their requirement too, then it is bound to be a win-win situation for all
• Don’t bank solely on a world-changing idea. Build something before you approach a VC. Let them feel that you are capable of converting ideas to reality.

Building a business from an idea is an uphill task, to say the least. Most businesses need financial backing at some stage or the other. Make sure that you choose the right investment partner and see your business grow leaps and bounds.

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