The venture capital (VC) industry in India has been growing rapidly in recent years, with many firms looking to invest in start-ups and small businesses. In this article, we will be taking a look at the top 10 active VC firms in India that are known for their investments in start-ups and small businesses.
These firms are considered to be among the most prominent players in the Indian VC industry and have made significant contributions to the growth of the start-up ecosystem in the country.
With 107 start-ups registered until 2022, India is about to see a surge in the number of start-ups and businesses in the following years. In 2021, India surpassed China’s investment scene. To give a blueprint of a business plan a physical shape and form demand an investment to be made.
Start-ups and small businesses in the starting phase require investment to take off. The capital invested initially is called venture capital/risk capital/patient capital. Venture capitalists analyse the scope and profitability of the business and invest accordingly in the project.
They support an amount, get equity in the business relative to the amount, and become shareholders and board members in the business. Every business, irrespective of size, requires some investments. India has 665 active investors in the current scenario.
Apart from the capital invested, venture capital firms invest their valuable strategies and guidance into the start-ups they work with. Some venture capital funds are early-stage expansion, and the rest are acquisition or buyout financing.
Here to help you know about their working systematics in detail, we have enlisted the ten best active venture capital firms in India that raise funds for small businesses and start-ups to which you can pitch your business blueprint.
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Top 10 Active VC Firms in India for Small Businesses & Start-Ups
1) Accel Partners
Accel is a top-performing venture capital firm based in Bengaluru. Their portfolio exit is 354, and they have worked for the growth of several early-stage start-ups. Along with the capital, they come on board with their precious and on-point mentorship.
They put forth their wealth into series-A, series-B, and series-C stages of investments. They have fundraised about 1853+ projects with $650+ millions of amounts engaged into them. Their field of investment generally considers small-scale businesses.
They have changed their name from Accel Partners to Accel recently. Their headquarters is in California. They have fundraiser companies like Flipkart, Swiggy, Jet.com, Vox Media, Zansaar, Myntra, Cure.fit, and others. They were one of the oldest in this field, being incepted in 1983. They operate in India, Palo Alto, China, and New York.
2) Sequoia Capital
Sequoia is a venture capital firm that has invested in more than 1000 companies till now. Through their actionable strategies, a team of market mentors, and resources, they have made 373+ investments till date. Headquartered in Menlo Park, California, it has invested in big companies such as Byjus, OYO Rooms, Apple, Google, PayPal, LinkedIn, Yahoo!, WhatsApp & others.
Their portfolio exists is 67, and they have invested in some significant early-stage start-ups. Their scope of Investments includes both private and public companies. In addition, they invest in both early and late-stage ventures.
Founded in 1972, Sequoia mainly operates in the tech industry and brings in 47 years of experience. Spread over seven funds, this American venture capital firm has a $5.4 billion asset value in India. Their investment mechanism is based on the process of shortlisting 10 to 20 start-ups to work with on a half-yearly basis. They invest in I.T., energy, retail, mobile, and media start-ups and businesses.
3) Nexus Ventures Partners
Operating within the SaaS start-up’s niche, they have fundraised 191+ start-ups in India. They are located in Mumbai and were laid the foundation of in 2006. Nexus Venture Partners is known to have been based in both Mumbai and Silicon valley.
The companies they have invested in include Rapido, Zomato, Jumbotail, Bolo App, Pratillipi, Unacademy, Rapido, WhiteHat Jr, etc. Their investment target comprises early-stage start-ups. Nexus is the first India-USA joint venture company. Their investment area includes Data analytics business, Storage, Cloud, Cyber security firms, and others.
4) Kalaari Capital
Kalaari is a visionary investing firm that primarily works with early-stage start-ups. Kalaari is a Bengaluru-located investment firm that has ventured capital into 110+ projects till now. Their portfolio exit is 27.
They have funded a whooping 740+ million money by investing in SEED, series-A & series-B stage start-ups. Established in 2006, their prime focus is on I.T. companies. Kalaari’s investment portfolio includes companies like Myntra, Zivame, Embibe, Welltok, Simplilearn, Snapdeal, and others.
With their expertise and a strong team of financial advisors, they have helped companies grow into brands.
5) Blume Ventures
Blume Ventures has backed 150+ start-ups and were founded in 2011. They focus on early-stage technology-based start-ups the most. Founded by Kartik Reddy and Sanjay Nath, Blume ventures assist pre-series-A stages, SEED, and medium-grown experiences and holds a fund size of $378.2 million.
Their portfolio comprises notable brands like Nowfloats, Exotol, Carbon Clean Solutions, Printo, Little Black Book, and others. Their guidance and actionable strategies have helped many start-ups bloom fast. This venture capital firm has focussed most on internet and mobile applications companies.
6) Chiratae Ventures
They are a well-known venture capital firm with experience of more than 15 years of operating in fundraising. They were known as IDG Ventures India and recently changed the firm name to Chiratae.
Sectors like mobile, consumer services, and Software Products interest them the most. Their invested start-up includes companies like FirstCry, Yatra, Lenskart, Myntra, and 200 others.
7) Ventures East
Venture East or EastVentures is known to have fundraised from more than 70+ start-ups. Some of them are Portea, Goli Vada Pao, and eYANTRA. Established in 1997, they are among the oldest firms actively operating till date.
Ventures East is a law firm localized in San Francisco. Their market asset value is around $325+ million. The sectors they invest most in are healthcare, Cloud, Mobility, technology, and others. They have 20 years of expertise to bring on board along with the capital.
8) Saif Partners
Another name among actively operating global venture capital firms, Saif Partners, was founded in 2001. They fundraise for Asian companies to reach the stage of IPO. Andrew Yan founded Saif Partners. Their scope of capital invested comprise 10 million USD to 100 million USD in a go.
Headquartered in India & China, their portfolio includes notable brands like BookMyShow, Chaayos, Paytm, Justdial.com, HomeShop18, Meesho, and Acko. They hold asset value of 400+ cr USD in the market. Sectors like consumer services and logistics particularly interest them.
9) Matrix Partners
Established in 2006, Matrix Partners holds a fund size of $721 million. Their working network includes companies like Testbook.com, FIIT JEE, Ola, LimeRoad, mSwipe, Avail Finance, and & M.E. They also aid at the strategic marketing and hiring fronts.
Among the start-ups they have operated at, 50 have gone on to public offerings. They operate in the U.S. and hold onto the principle of ‘Founders First.’ The niches they target include media start-ups, Internet, SaaS, E-commerce, and Entertainment start-ups.
10) 3one4 Capital
Last but not least, 3one4 is one of the leading venture capital firms in India. They are an early-stage venture capital fund. The Bengaluru-based firm has made 134+ investments till now. 3one4 has nine portfolio exits, and they have invested $318+ million in the Indian market.
Apart from venturing their capital into companies, they help brands grow via marketable strategies. To establish a brand from product design to working on implementable strategies, their window of working includes them all.
They primarily focus on SaaS start-ups. They invest in series-A, series B, and SEED stages. Their portfolio included brands like Loco, HOMER, and DoSelect were laid the foundation of in 2015.
Final Remarks:
After analysing business proportions, Venture Capital funds invest in their future to ensure a flow of money which they will again invest into some other company. The abovementioned 10 top V.C.s are ruling in the industry regarding asset revenue generated and investments made.
These firms have fundraised with some of the leading brands both domestically and globally. To give your business idea wings, you can pitch it to them. If selected, this would not only land you a good amount of capital but will bring along some excellent guidance to follow up to the ladder above the rest.