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