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How Unicorn India Ventures Doubled LPs’ Investments With Its Partial Exit Strategy

Inc42 · 1y

Unicorn India Ventures (UIV), a venture capital firm, achieved impressive returns for its Limited Partners (LPs) by partially exiting its investment in the neobanking startup Open. UIV had invested INR 7 crore (about $854,000) in Open when few investors were willing to enter the fintech sector. In 2022, UIV partially exited Open at a valuation exceeding $650 million, resulting in an 85-90X blended return, doubling the initial value of Fund I for its LPs. UIV's success is attributed to its active involvement in startups, in-depth due diligence, and a strategy focused on B2B SaaS companies. The firm recently announced the first close of its INR 1,000 crore Fund III, with a focus on global SaaS and digital platform startups in sectors like climate tech, agritech, spacetech, and semiconductors. UIV's founders believe in controlling entry prices in startups rather than exit prices, which has protected them from market sentiments and resulted in meaningful exits.