2. 2 December 16, 2015 · Stefan Grabmann Upgrad Hangout - „Indian Funding Landscape“
2015 has been an extraordinary year for the Indian startup ecosystem
“Alibaba, Foxconn and
SoftBank invest in Snapdeal”
Source: Reuters
“Goldman Sachs leads $100-mn
investment in furniture startup
Pepperfry.com”
Source: Business Standard
3. 3 December 16, 2015 · Stefan Grabmann Upgrad Hangout - „Indian Funding Landscape“
– About Venture Capital
– Recent key developments in startup funding in India
Agenda
4. 4 December 16, 2015 · Stefan Grabmann Upgrad Hangout - „Indian Funding Landscape“
DebtDebtDebt Equity
What funding options do entrepreneurs have?
• Traditional bank loans
• Venture debt
• etc.
• Own Capital
• Family and Friends
• Business Angels
• Seed funds
• VC / PE funds
• etc.
5. 5 December 16, 2015 · Stefan Grabmann Upgrad Hangout - „Indian Funding Landscape“
How does Venture Capital work? (I)
Stage
Company value
EXIT types
• IPO
• M&A
• Secondary Sale
• Buyback
Launch Early Growth Later
6. 6 December 16, 2015 · Stefan Grabmann Upgrad Hangout - „Indian Funding Landscape“
Limited
partners
Venture
Capital fund
Startup
How does Venture Capital work? (II)
Limited
partners
Venture
Capital fund
Startups
$ raised $ invested
$ exited$ distributed
“Power law”
• Lifetime of 8-10 yrs
• Earns mgmt. fee and
performance fee
(“Carry”)
7. 7 December 16, 2015 · Stefan Grabmann Upgrad Hangout - „Indian Funding Landscape“
What are the key elements of an investment process?
3. Term Sheet
2. Limited Review
1. Contact Stage
INVESTMENT
4. Remaining
Due Diligence
DEALFLOW
8. 8 December 16, 2015 · Stefan Grabmann Upgrad Hangout - „Indian Funding Landscape“
What do VCs typically evaluate?
Limited
partners
Market
opportunity
Limited
partnersTeam
Limited
partnersProduct
Limited
partnersStrategy
Limited
partnersDeal
9. 9 December 16, 2015 · Stefan Grabmann Upgrad Hangout - „Indian Funding Landscape“
– About Venture Capital
– Recent key developments in startup funding in India
Agenda
10. 10 December 16, 2015 · Stefan Grabmann Upgrad Hangout - „Indian Funding Landscape“
The last 15 years of Indian Venture Capital in a nut shell
20152014201320062000
• Limited partners
• VC investments at
US$4.7b across 383
funding rounds
• Valuations start rising
• Limited
partners
• VC investments
at US$7.2b
across 760
funding rounds
Source: Tracxn, Pitchbook
• Limited partners
• Second generation of
Indian VC funds emerges
• Silicon Valley VCs make
direct investments in
India
• Limited partners
• Difficult times for
tech startups
globally post the
dot-com bust
2010… …
Key
developments
Notable
exits
Billion Dollar
Valuations
11. 11 December 16, 2015 · Stefan Grabmann Upgrad Hangout - „Indian Funding Landscape“
The status today
• Limited partners
• Valuation shift
• Fast deal closures
• Time between fundraises decreases
6-12 months ago
• Limited partners
• Overheated markets now moderating
• Status quo of incumbents are being challenged
by disrupters
Now
What that means for startups today
• Not much has changed for entrepreneurs
• Build something valuable
• Investors will still be on the look out for the best
companies to partner with