📺 Stream EntrepreneurTV for Free 📺

The Money Machine is on a Roll Funds are calling the shots for India's start-up ecosystem to become bigger.

By Ritu Marya

Opinions expressed by Entrepreneur contributors are their own.

You're reading Entrepreneur India, an international franchise of Entrepreneur Media.

Entrepreneur India

Money is truly what makes the start-ups go round. The early-stage funding space has been the most active in the funding scene from the final quarter of 2018 to 2019. It is also heartening to see that investors are not only keen to deploy capital in young companies but also ready to invest in building a flourishing ecosystem by helping young start-ups to discover the power of their idea. Our list of 42 money managers, both from India as well as Asia, is by no means exhaustive but one that captures the essence of the exciting funding climate in India. Our editorial team has worked relentlessly to interact with more and more people from the funding landscape to give readers deep dive into the start-up ecosystem.

It's that time of the year when we pull all the transactions and deal making happening in the entrepreneurial ecosystem. Though one of the quarters saw a drop in deals it seems a rise can be spotted once again. We feature some of the top investors who have been at the heart of most active investments taking place. Watch out our Investor Special this year featuring investors who are eyeing the larger as well as little pies in the start-up space. As start-up investments gain popularity, investors are becoming aware of various factors involved in selecting the right pick to meet their requirements. Let's look at some of India's most experienced money managers and their investment strategy.

VC funding is the most coveted space to be. Most institutional angel funds and individual investors too are getting into this space and on the other hand large VC funds are acting more and more like Private Equity players with focus on large later-stage deals. While capital efficient tech start-ups with recurring revenue models have always been the flavour of funds, today there is an equally larger pool of funds that are focusing on consumer-facing businesses in the non-tech space, whether products or services. Given India's large population and distribution opportunities, this is truly a space to watch out for. Investors are keen to keep companies private for a longer time and there are more mega rounds of funding happening. The exit market is also growing in M&A category. The exciting domain of family offices is also ensuring wealth structuring, succession planning and governance. Read further about how the impact investment landscape is maturing.

(This article was first published in the October 2019 issue of Entrepreneur Magazine. To subscribe, click here)

Ritu Marya

Editor-in-Chief, Entrepreneur Media (APAC & India)

Side Hustle

These Coworkers-Turned-Friends Started a Side Hustle on Amazon — Now It's a 'Full Hustle' Earning Over $20 Million a Year: 'Jump in With Both Feet'

Achal Patel and Russell Gong met at a large consulting firm and "bonded over a shared vision to create a mission-led company."

Productivity

Want to Be More Productive? Here's How Google Executives Structure Their Schedules

These five tactics from inside Google will help you focus and protect your time.

Business Ideas

63 Small Business Ideas to Start in 2024

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2024.

Side Hustle

How to Turn Your Hobby Into a Successful Business

A hobby, interest or charity project can turn into a money-making business if you know the right steps to take.

Leadership

You Might Think You're a Great Leader — But Do Your Employees Agree? Here's How to Harness Empathy to Drive Team Success

True empathy is the mixture of unfiltered honesty with a deep understanding of an individual's narrative.

News and Trends

IFC Grants HDFC Bank USD 500 Mn to Ramp Up Microloans for Women Borrowers

The HDFC bank will use IFC's financing for on-lending as microloans to self-help groups (SHGs) and joint liability groups (JLGs) enrolled in the sustainable livelihoods initiative (SLI).