🚀 Medial just raised $500k in Pre-Series A. Tap to read the announcement. 🎉
Login

Back to feeds

Jayant Mundhra

 • 

Dexter Capital Advisors • 8m

I sometimes worry, about what’s happening in the Indian VC ecosystem 😅😅 Based on a recent chart shared by seasoned VC Vinit Bhansali, in the last 10 years, the number of VC firms in India has grown by almost 25x. And based on an assertion by Peak XV Partners’ Rajan Anandan, India-centric VCs are sitting on top of over $20bn of dry powder. .. This is good for startups. -> With time passing, the pressure is only going to grow for the VCs to deploy that capital -> After all, they have a defined fund life of 7-10 years and have to deliver returns to their investors, for which deployment is the only first step -> And the more the delay, the more will be pressure to invest in early-stage startups, because they will promise prospects of better returns in a smaller time frame So, sounds good for the startups in the medium to longer term. .. But, think about it. -> If you talk to seasoned VCs, it’s a common grouse that many who have turned VCs are simply not made to be in this business -> They tell you, the space has seen an influx of so many operators when most have never been much about investing even in their personal lives -> And they add that a bad VC does more damage to the founders, than excess money .. And the biggest fact is- If you look at mature ecosystems like the US, most VCs fail to even beat the basic stock market returns. -> So, in a market like India where the ecosystem is yet to mature, and has seen a 25x jump in the number of VCs, who are now sitting on a crazy amount of dry powder, will fate be any different? -> Plus, the influx of inexperienced investors is a major concern for any asset class. Reckless investments distort the market first, but lead to big losses eventually I hope I am wrong here, but even though I am happy about the maturing Indian VC ecosystem, I hold my fears. What do you think?

5 replies19 likes
5
Replies (5)

More like this

Recommendations from Medial

Image Description
Image Description

Vrishank Raj

Stealth • 7m

This is how the VC ecosystem works. - People from Canada and the USA contribute their money every month to a pension fund with the aim of receiving a pension once they retire - The pension fund, aiming to generate returns, allocates its money to v

See More
8 replies32 likes
9
Image Description

Adithya Pappala

Stealth • 17d

#9TDAYVC- DAY-14 🎯What is Hurdle Rate? 🎯What is Carry Fees? 🎯The preferred returns are also called as “Hurdle Rate” in VC & P.E Funds. It is the threshold return that LP’S should receive prior GP’S receive. In developed markets, The hurdle

See More
1 replies1 like
Image Description

SamCtrlPlusAltMan

 • 

OpenAI • 6m

As we move further away from 2021, it's becoming increasingly clear that the Indian startup ecosystem is uniquely distinct. A less widely shared view in the industry is that Indian venture capital (VC) investments are more likely to yield several $

See More
1 replies13 likes
Image Description
Image Description

Vrishank Raj

Stealth • 7m

When A VC firm is investing capital in your startup, how much money do they expect in return? I was having a talk with a very senior VC recently, I asked him the same question. He gave me the following data: Pre-seed/seed - 100x returns Series A -

See More
15 replies33 likes
14
Image Description

Adithya Pappala

Stealth • 16d

#9TDAYVC-DAY-15 What are Additional Returns? What is the Catch-Up Clause? In Developed Markets, The structure is in 2-20% where 2 is Management Fees & 20 is Additional Returns.Additional Returns & 2-20 structure is not ideal in Indian AIF Market

See More
1 replies1 like
Image Description

Mayank Kumar

Stealth • 6m

The Impact of Venture Capital on Innovation! Venture capital (VC) plays a crucial role in driving innovation. By providing the necessary funds, VCs enable startups to scale and develop groundbreaking technologies. Think of companies like Uber, Air

See More
1 replies4 likes
Anonymous
Image Description
Image Description

Anonymous

Stealth • 10m

What are the newsletters you follow for startups, building products and VC ecosystem?

7 replies14 likes
Image Description
Image Description

Arcane

Stealth • 11d

Even though 25% of all startups on Carta have just a solo founder, VCs hesitate to fund them. Having 2 to 3 founders seems to be the sweet spot if you were to raise VC money while building a startup. So, Is there a way to make VC funding easier as

See More
10 replies31 likes
29
Image Description
Image Description

Sanskar

Stealth • 2m

Sanjeev Bikhchandani - the man who made the most successful investment in Indian startup history Sanjeev Bikhchandani is the founder of Infoedge and has been one of the boldest investor in Indian startup ecosystem Snajeev first invested in Zomato b

See More
3 replies6 likes
Image Description

SamCtrlPlusAltMan

 • 

OpenAI • 6m

Studying India's rapidly evolving VC landscape & have some hypotheses on its future: 1. Cold outreach deals? With startups outpacing VCs, cold outreach may rise, pushing VCs to better evaluate pitches.​​​​​​​​​​​​​​​​ 2. Deal sourcing shake-up?

See More
2 replies16 likes
2

Download the medial app to read full posts, comements and news.