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 -
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Anonymous 2
Stealth â˘Â 7m
It's important to note that these are likely "expected" returns, not guaranteed. VCs understand that many of their investments will fail, so the successful ones need to generate outsized returns to offset those losses.
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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 $
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VCGuy
Stealth â˘Â 3m
Swiggy's upcoming IPO will be a multibagger win for early VC investors.
đŻDetailed insights will be available once their DRHP is public, but if you look at the history -
- Elevation Capital: Investment of $5.9 M turned into $61.8 M (~10x returns)
-
These are all of the products that were killed by Google (pyaar se)
On a serious note, itâs actually amazing how a $200Bn+ revenue/year company has had this many losses.
What does it tell you about startups?
That youâve to fail 200+ times, and
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đŻWhat is Hurdle Rate?
đŻWhat is Carry Fees?
đŻThe preferred returns are also called as âHurdle Rateâ in VC & P.E Funds. It is the threshold return that LPâS should receive prior GPâS receive. In developed markets, The hurdle
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Vrishank Raj
Stealth â˘Â 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
I sometimes worry, about whatâs happening in the Indian VC ecosystem đ đ
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
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