The startup ecosystem in India is flourishing and one of the prime aspects of it remains the Venture Capital Firms or VCs. Statistics have shown that even the most brilliant startup ideas with a great team, fail in the early years of their operation due to the lack of sufficient funds.
Funding is extremely crucial; once the startups and small businesses have reached the growth stage, a significant amount of money is required to enable them to escalate further smoothly.
Formerly, banks and other related sources were the only forms of funding available for small businesses and startups. Thanks to the evolvement of angel investors and top venture capital firms in India startups have access to more reliable forms of funding.
Since 2015, over 650 Venture Capitalists have shown active participation in the Indian startup funding. Here we are just going to concentrate on top venture capital firms in India to fund early-stage startups and small businesses.
Venture Capital firms are funds that are operated by financial wizards and entrepreneurs known as Venture Capitalists. The funds here are invested in early-stage startups that show the potential to develop and grow into highly profitable businesses.
VC firms are recognized by SEBI and turn out to be the most suitable forms of funding for small businesses and startups seeking huge capital investment in their early stages of growth.
These are the top Venture Capital firms in India to look out for:
1) ACCEL PARTNERS
Accel Partners is one of the oldest venture capital firms in India with more than three decades in the startup ecosystem. Headquartered in California, this VC firm has backed hundreds of companies and focuses primarily on internet technology companies.
The investment bracket at Accel Partners ranges from $500K to $50 Million depending on the nature of the company.
Domain of Investment – Infrastructure, Mobile & Software, Internet and Consumer Services
Startups Funded – Myntra, BookMyShow, BabyOYE, Freshdesk, Flipkart etc.
2) SEQUOIA CAPITAL
Sequoia Capital India is an affiliation of Sequoia Capital that is based in California. This VC firm specialises in startup funding at the early, seed and also in the growth stage with fixed investment structure for each of these stages.
Investment Domain – Healthcare, Consumer Internet, Financial Sector and Technology
Startups Funded – JustDial, Zomato, Practo, Groupon etc.
3) NEXUS VENTURE PARTNERS
Nexus Venture Partners is another name in the list of top venture capital firms in India to look out for. They primarily invest in small businesses and startup in their early stages that standout in innovation and differentiability. Nexus Venture Partners can invest from $500,000 to $10 million.
Investment Domain – Data Security, Mobile, Infrastructure, Bio Data Analytics, Agribusiness, Consumer and Business Services
Startups Funded – Craftsvilla, Snapdeal, Shopclues, etc.
4) KALAARI CAPITAL
Kalaari Capital is a trusted venture capital firm in India founded in 2006. They primarily invest in technology-based startups and small businesses in their early and seed stage. Kalaari Capital not only provides an adequate fund to startups, but they also have a reliable advisory board to assist young entrepreneurs with effective business solutions.
Domain of Investment – Internet, ECommerce, Curated Web
Startups Funded – Snapdeal, ScoopWhoop, Myntra, Urban Ladder, Instamojo etc.
5) BLUME VENTURES
Blume Ventures, established in 2011, is one of the top venture capital firms in India that is referred to as the ‘Founder’s VC’. With over a decade’s experience in startup funding, here they also offer complete support and mentoring to such upcoming entrepreneurs.
Blume Ventures has funded over 60 different startups with potential ideas and helped them to establish themselves in the competitive market.
Investment Domain – Mobile Applications, Internet & Software Sectors, Telecommunication Equipments, Research and Development
Startups Funded – Cashify, HealthifyMe, TaxiForSure, Belong etc.
6) CHIRATAE VENTURES
Chiratae Ventures (previously known as IDG Ventures India) is a name that resonates well with the venture capital space in India. They have an experience of more than 15 years in startup funding with a portfolio of over 200 companies in various sectors like Mobile, Engineering, Media & Technolgy and Health-Tech to name a few. IDG Ventures investment bracket falls between $1 million to $10 million.
Investment Focus – Mobile, Software Products, Engineering-Medical Devices, Technology-based Consumer Services
Startups Funded – FirstCry, Yatra, Lenskart, Myntra, Zivame etc.
7) VENTURE EAST
Venture East is investing from 1997 and is the longest-serving VC firm in India. The fund managers are looking after $325 million plus investments in companies in the IT sector and scientifically based startups. Venture East has invested in more than 70 startups and the number is expected to only increase in the coming future.
Investment Focus – Financial Services, Digital Healthcare, Consumer-driven & Retail, Pharma & Life Sciences
Startups Funded – eYANTRA, Portea, Goli Vada Pao, etc.
8) SAIF PARTNERS
SAIF Partners has been investing since 2001 and is one of the most successful VC firms in India. The fund managers manage 400 Crores USD worth of assets. With headquarters in China and India, SAIF invests in startups across their journey, from seed capital to high ticketed growth capital.
Sector Focus – Financial Services, Digital Healthcare, Consumer Internet, Logistics, SaaS etc.
Startups Funded – Acko, Aye, BookMyShow, Chaayos, ClearTax, Meesho etc.
9) MATRIX PARTNERS
Matrix Partners is a US-based venture capital firm that invests in seed and early-stage startups. The firm has the philosophy of being “Founders First” i.e. not only they invest capital in high-growth potential companies but also helps them in important domains like hiring, strategic partnerships etc.
Sector Focus – Entertainment and Media, Consumer Internet, SaaS, E-commerce etc.
Startups Funded – Limeroad, Housejoy, FIITJEE, Ola, mSwipe etc.
10) 3one4 CAPITAL
3one4 Capital is a promising venture capital firm started by the son-duo of the renowned investor Mohandas Pai. With more than 50 investments, 3one4 not only invests capital in new-age technologically driven companies but also helps founders in their key business problems.
Sector Focus – Media & Content, Health, Education, Fintech, Consumer Internet etc.
Startups Funded – Faircent, Licious, i2e1, Tripoto, YourStory etc.
Growth of Venture Capital firms in India
The growth in the percentage of VC investments in India is phenomenal. They have opened up newer expansion and avenues for Indian startups and small businesses and the future looks quite promising. The criteria for the hierarchy of the above-mentioned top VC firms in India is based on the number of investments only.
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