19 VC firms successfully raise their 3rd funds
As many as 19 homegrown Venture Capital (VC) firms have successfully raised their third funds, a new report by private markets research firm Venture Intelligence shows. Of these, five VC firms have breached the coveted Fund IV mark, the report titled India VC Landscape Report shows.
Chiratae Ventures tops the fund raising pyramid having successfully closed over five core funds (not including continuation and opportunities funds), followed by Blume Ventures, 3one4 Capital, India Quotient and Z47 with four funds each. (Venture Intelligence classifies homegrown firms as those that are registered under SEBI-AIF framework. Also, the analysis for this report includes only financial returns focused VC firms and does not include government sponsored funds and Social VC/Impact funds.)
“The recent success of the Indian VC industry with respect to fund raising is on the back of the improving environment for exits, actual returns distributed to Limited Partners (from earlier vintage funds) and the consequent rising appetite of domestic investors in the VC asset class,” remarked Arun Natarajan, Founder of Venture Intelligence.
The emergence of the Domestic IPO market as a viable option for VC exits in recent years has been a key positive change for the industry, the report shows highlighting the top VC exits over the last decade in terms of exit size and profitability.
The report also features in-depth invited articles from key industry players. Ranjith Menon, Partner and Managing Director, Chiratae Ventures writes on how the firm focuses on a disciplined approach when it comes to exiting its investments. “Consistency is the key. Over the past 14 years, we have instituted a very deliberate strategy towards divestments. This has helped Chiratae return capital to our LPs every single year. Out of $1 Billion deployed, we’ve already returned over $900 million, showcasing our strong focus on distributions. In the last four years, we have consistently returned $60 million to $80 million every year, 2023 being a year where our distribution was at $180 million.”
The report also showcases how YourNest Venture Capital has been able to take advantage of the multiple avenues, to deliver exits on its Early Stage bets. And, in the process, break the myth that DeepTech investments require significantly long gestation periods for an investment to pay off. Vikram Gupta, Founder and Managing Partner, IvyCap Ventures, writes in the report on how the firm’s establishment of Endowments at various IITs and IIMs, has created a powerful positive cycle.
The free to download India VC Landscape Report can be downloaded from https://www.ventureintelligence.com/vclreport.
Venture Intelligence is India’s longest serving provider of data on Private Company Financials, Transactions (PE-VC and M&A) and their Valuations. For more information, please visit https://www.ventureintelligence.com
