This Company Rolls Out Rs 400-Crore Fund For Startups; Check Details

Initial phase based at V Founder’s Circle (WFC), Mumbai start up Investment platform, on Thursday said it has launched Rs 400 crore ‘Invest Trust’ fund to boost early-stage startup funding in India. The target size of the fund will be up to Rs 200 crore with a green shoe option of up to Rs 200 crore.

“WFC has also launched We Founder Circle Global Angels Fund in GIFT City. We Founder Circle Global Angels Fund is a cross-border fund targeting investors from across the globe. The fund size is $30M with a green shoe option of $30M and a tenor of 7 years with an option to extend for an additional 2 years. V Founder Circle Global Angels Fund is also a sector-agnostic fund that will enable global investors to participate in opportunities across the globe,” V Founder Circle said in a statement.

It added that the fund is sector-agnostic, but will primarily invest in portfolio entities across diverse sectors such as financial services, deep tech, financial technology, EV, content gaming, industrial tech, retail tech, edtech, supply chain, and more. Agritech, Consumer/D2C, Manufacturing and others (Logistics, Healthcare, Technology, Agri-allied sectors, etc.)

There are 84,102 recognized startups in India Spreading across 56 sectors including agriculture, biotechnology and chemicals. Startup India was launched by the government on 16 January 2016.

Gaurav VK Singhvi, Managing Partner – Investment Manager (V Founder Circle Angel Accelerator LLP) of both the funds said, “The year 2021 saw 42 startups turn into unicorns and deliver stellar results for their early stage investors. This has attracted many HNIs towards angel investment; However, the trend is still very early and needs to be streamlined along with the right guidance for founders and investors. Hence, we envision this fund to catalyze the process from both sides – angel investors and early stage startups.”

He said that two-three years ago, it was all about mentoring and incubating startups. Now the need has arisen in which it is about strengthening the flow of capital, streamlining it to encourage plus outcomes for HNIs and also about bridging the gap between angel investors and startups. “In addition to capital access, the fund also provides networking and mentorship support to startups with technical expertise and global business connections.”

The company said that while it may be volatile for late-stage inflows, the average deal size for early-stage startups has not been impacted much, reflecting the potential in startup investments as financial instruments of the asset class. Angel highlights growing interest from investors. Accordingly, the fund will invest in startups raising Pre-Seed, Seed and Series A rounds.

Neeraj Tyagi, co-founder and CEO of V Founder Circle, said, “This fund is a natural extension of our effort to include more startups and investors in the mainstream of the ecosystem. We are building both sides of the community and this fund Angel will enable a growing number of investors to invest in a regulatory and compliance-based framework. We expect to bring on board over 1,000 angel investors to invest in 200 startups over the next 24 months.”

Established in October 2020, the company said that in the last 23 months, We Founder Circle has invested in over 70 startups at their early stage and mentored them through various initiatives. The funds will help the founders prepare for the next phase of growth. “The launch of the fund is in line with WFC’s ambition of empowering 500 startups in 5 years.”

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