Rich investors like to invest in businesses that can expand over the long term. This sort of finance is known as venture capital, and venture capitalists are those who invest in it. A venture capital investment occurs when a venture capitalist purchases stock in a firm and joins as a financial partner.
Today, venture capital firms are well regarded for helping startups grow into unicorns. But how can you choose the ideal partner for your direct-to-consumer business? We have created a list of the top 10 venture capital firms in India for 2022 to make things simpler.
What exactly are Venture Capital Companies, and how do they operate?
An organisation known as a venture capital firm is one that has raised money to date from affluent investors seeking high-risk, high-return prospects to increase their fortune. Then, for a few years, during the different stages of their operations, these funds, which are currently referred to as venture capital funds, are invested in fledgling firms. Most of the time, venture capital companies begin financing businesses at the seed round or startup stage and continue doing so until they are ready to go public.
It may take from seven to ten years to complete this. It’s interesting to note that venture capital firms also coach and strategize for early-stage entrepreneurs in addition to investing money. The venture capitalist often joins the company’s board and has the ability to sway decisions in the company’s favour.
Typically, venture capital companies pinpoint and hone in on a few high-potential areas and scour the startup scene for businesses that exhibit encouraging development. Consumer technology, fintech, edtech, and SaaS are a few of the well-funded industries in India.
Top 10 Venture Capitalists
1. Sequoia Capital
American venture capital company Sequoia Capital has its headquarters in Menlo Park, California. A venture capital company called Sequoia Capital makes investments in both public and private businesses. Sequoia Capital has made over 1000 investments since 1972, including well-known companies like Apple, Google, Oracle, Nvidia, Github, and others.
It focuses mostly on the technology industry. Investments by Sequoia Capital have been made in companies with a combined stock market value of $3.3 trillion. It oversees assets of $5.4 billion in India, spread over seven funds.
This venture capital firm oversees the Surge programme, which provides advice and funding to businesses throughout Southeast Asia, including India. Sequoia selects 15 to 20 companies for each cohort every six months, investing $1 million to $2 million in each with the assistance of additional investors.
2. Nexus Venture Partners
Indian venture capital companies Nexus Venture Partners The business has locations in Silicon Valley and India. They make investments in Indian businesses that cater to domestic or international markets, or in US-based businesses that have technology useful to rising markets like India. Their investments in early-stage and early-growth enterprises vary from $500,000 to $10 million.
Companies like Snapdeal, Shopclues, Craftsvilla, etc. are represented in the portfolio.
Important figures: Anup Gupta and Suvir Sujan
3. Accel
Accel launches a $4 billion fund for India’s early-stage tech businesses. A venture capital company called Accel, formerly known as Accel Partners, is based in Palo Alto, California, in the United States.
More than $1.6 billion in assets are now managed by Accel. It has closed about six funds in India. Blackbuck, Swiggy, Flipkart, and Cure. Among the businesses that have received funding from the company are Fit and other startups in India. Growth capital investments made by the company are tailored for more established companies that require a greater quantity of money to expand.
Accel is a venture capital firm that specialises on the technology sector’s consumer, infrastructure, media, mobile, SaaS, security, customer care services, and corporate software.
4. Blume Ventures
The venture capital company Blume Ventures is located in Mumbai, Maharashtra, India. It makes investments in startups and early-stage companies. In order to increase startup financing in India, the venture capital sector was established in 2010. Startups in the technology sector are of particular interest to Blume Ventures. The firm became the first institutionalised early-stage investor in 2011 when it launched its first micro-VC fund.
As one of the largest domestic opportunity funds among Indian venture capital firms specialising on high-performing portfolio companies, Blume Ventures created a $41 million opportunity fund in 2020. Blume participated in the Series B through D rounds of this fund and invested in Unacademy and Servify.
The company has around three other funds, the most recent of which was valued $102 million, before the COVID-19 pandemic in India. The VC firm oversees a total capitalization of around $225 million. More than 150 businesses have been sponsored by Blume Ventures, which also oversees more than $280 million in assets.
5.Ankur Capital Fund
Indian venture capital firms Ankur Capital Fund The business seeks entrepreneurs who can tackle major issues in, among other things, agritech, food, healthcare, skill development, and education. The size of investments typically ranges from 50 lakhs to 5 crores. They also assist portfolio firms in obtaining further funding from other investors.
Ankur Capital Fund has invested in a number of firms, including Cropin, Tessol, and BigHaat.
6. Elevation Capital
SAIF Partners was changed to Elevation Capital on October 20, 2020, a stage- and sector-neutral private equity firm in Asia. The Gurugram, Haryana, India-based corporation intends to invest in early-stage, later-stage, and seed-stage companies. Elevation Capital, formerly known as SAIF Partners, was established in 2001 as the $400 million Softbank Asia Infrastructure Fund (SAIF), with the sole restricted partners being Cisco Systems and Softbank Group.
Similar to SAIF Partners, Elevation Capital started out as a Hong Kong-based investment company that concentrated on China, India, Hong Kong, and Taiwan. The headquarters of the Indian venture capital organisations are in Bengaluru and Gurugram. Prior investments by Elevation Capital include FirstCry, Just Dial, MakeMyTrip, Meesho, Paytm, ShareChat, and Swiggy is still in its early phases, as are others.
The company has expanded its investment in Indian startups by 2020 in new industries as edtech, health tech, enterprise Software-as-a-Service (SaaS), entertainment, and direct-to-consumer enterprises.
7. Tiger Global Management
A multinational investment company called Tiger Global Management LLC focuses on public and private companies in the Internet, software, consumer, and financial technology sectors. Delivering exceptional long-term investment returns is the key goal. It develops an original worldwide investing platform.
They put their money into top-notch organisations with outstanding management teams and profit from long-term, steady growth. As one of the most well-known international investors in Indian entrepreneurs, Tiger Global Management, a New York-based company, was founded in 2001 and has made over $300 million in initial investments.
Over 13 businesses received investments from it in the first half of FY19, including a $90 million round for the agri-tech startup Ninjacart and a $60 million infusion for the B2B industrial products platform Moglix.
8. SIDBI Venture Capital
SIDBI’s wholly-owned subsidiary Sidbi Venture Capital Limited. The organisation was founded in 1999 as an investment management firm with the main goal of supporting and promoting early-stage companies in India. Brands like Billdesk, Centaur, etc. were supported by the corporation.
9. Khosla Ventures
A US-based venture capital firm is called Khosla Ventures. They often search for investment for new businesses in the technology industry. Successful firms like 60db, Academia.edu, and others have received their investment.
10. Kalaari Capital
Kalaari Capital was established in Bengaluru by Vani Kola in 2006. It focuses on businesses engaged in technology in India. With more than 15 exits from companies like Myntra and Snapdeal, it has invested more than 92 million dollars across three funds. In some ways, it has moved on from Zivame.
$650 million in assets are under Kalaari Capital’s management. It has a strong Bangalore advisory team that makes startup investments. Supporting businesspeople with the capacity to lead the world in the future is something Kalaari is passionate about. The greatest fund raised by an Indian VC in 2015 was raised by this business, who raised $290 million.