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    Upgrad Hangout: Funding Landscape in India

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    Koneru Krishnakant
    This document summarizes the Indian startup funding landscape in 2015. It discusses how venture capital works through various funding stages and exits. Recent developments that year included Goldman Sachs investing $100 million in Pepperfry.com, and Alibaba, Foxconn and SoftBank investing in Snapdeal. The presentation notes that 2015 saw $7.2 billion in VC investments across 760 funding rounds in India, with valuations starting to rise. While funding markets became overheated 6-12 months prior, they were now moderating, though entrepreneurs should still focus on building valuable companies and attracting investors.

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    Upgrad Hangout: Funding Landscape in India

    Uploaded by

    Koneru Krishnakant
    16 views12 pages
    This document summarizes the Indian startup funding landscape in 2015. It discusses how venture capital works through various funding stages and exits. Recent developments that year included Goldman Sachs investing $100 million in Pepperfry.com, and Alibaba, Foxconn and SoftBank investing in Snapdeal. The presentation notes that 2015 saw $7.2 billion in VC investments across 760 funding rounds in India, with valuations starting to rise. While funding markets became overheated 6-12 months prior, they were now moderating, though entrepreneurs should still focus on building valuable companies and attracting investors.

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    This document summarizes the Indian startup funding landscape in 2015. It discusses how venture capital works through various funding stages and exits. Recent developments that year included Goldman Sachs investing $100 million in Pepperfry.com, and Alibaba, Foxconn and SoftBank investing in Snapdeal. The presentation notes that 2015 saw $7.2 billion in VC investments across 760 funding rounds in India, with valuations starting to rise. While funding markets became overheated 6-12 months prior, they were now moderating, though entrepreneurs should still focus on building valuable companies and attracting investors.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as pdf or txt
    16 views12 pages

    Upgrad Hangout: Funding Landscape in India

    Uploaded by

    Koneru Krishnakant
    This document summarizes the Indian startup funding landscape in 2015. It discusses how venture capital works through various funding stages and exits. Recent developments that year included Goldman Sachs investing $100 million in Pepperfry.com, and Alibaba, Foxconn and SoftBank investing in Snapdeal. The presentation notes that 2015 saw $7.2 billion in VC investments across 760 funding rounds in India, with valuations starting to rise. While funding markets became overheated 6-12 months prior, they were now moderating, though entrepreneurs should still focus on building valuable companies and attracting investors.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as pdf or txt
    of 12

    Upgrad Hangout

    Funding landscape in India

    16/12/2015; 8:00pm – 9:00pm


    2015 has been an extraordinary year for the Indian startup ecosystem

    “Goldman Sachs leads $100-mn


    investment in furniture startup
    Pepperfry.com”
    Source: Business Standard

    “Alibaba, Foxconn and


    SoftBank invest in Snapdeal”
    Source: Reuters

    2 December 16, 2015 · Stefan Grabmann Upgrad Hangout - „Indian Funding Landscape“
    Agenda

    – About Venture Capital

    – Recent key developments in startup funding in India

    3 December 16, 2015 · Stefan Grabmann Upgrad Hangout - „Indian Funding Landscape“
    What funding options do entrepreneurs have?

    Debt
    Debt Debt
    Equity

    • Own Capital
    • Family and Friends
    • Traditional bank loans
    • Business Angels
    • Venture debt
    • Seed funds
    • etc.
    • VC / PE funds
    • etc.

    4 December 16, 2015 · Stefan Grabmann Upgrad Hangout - „Indian Funding Landscape“
    How does Venture Capital work? (I)

    Company value

    EXIT types

    • IPO
    • M&A
    • Secondary Sale
    • Buyback

    Stage
    Launch Early Growth Later

    5 December 16, 2015 · Stefan Grabmann Upgrad Hangout - „Indian Funding Landscape“
    How does Venture Capital work? (II)

    “Power law”

    $ distributed $ exited

    Limited
    Limited Venture
    Venture Startup
    Startups
    partners
    partners Capitalfund
    Capital fund
    $ raised $ invested

    • Lifetime of 8-10 yrs


    • Earns mgmt. fee and
    performance fee
    (“Carry”)

    6 December 16, 2015 · Stefan Grabmann Upgrad Hangout - „Indian Funding Landscape“
    What are the key elements of an investment process?

    DEALFLOW

    1. Contact Stage

    2. Limited Review

    3. Term Sheet

    4. Remaining
    Due Diligence

    INVESTMENT

    7 December 16, 2015 · Stefan Grabmann Upgrad Hangout - „Indian Funding Landscape“
    What do VCs typically evaluate?

    Limited
    Market Limited Limited Limited Limited
    partners Team
    partners Product
    partners Strategy
    partners Deal
    partners
    opportunity

    8 December 16, 2015 · Stefan Grabmann Upgrad Hangout - „Indian Funding Landscape“
    Agenda

    – About Venture Capital

    – Recent key developments in startup funding in India

    9 December 16, 2015 · Stefan Grabmann Upgrad Hangout - „Indian Funding Landscape“
    The last 15 years of Indian Venture Capital in a nut shell

    • Second generation of • VC investments


    • Difficult times for • VC investments at
    Key Indian VC funds emerges • at US$7.2b
    Limited
    • tech startups
    Limited partners • LimitedValley
    • Silicon partners
    VCs make • US$4.7b across 383
    Limited partners across 760
    developments globally post the funding rounds partners
    direct investments in funding rounds
    dot-com bust • Valuations start rising
    India

    2000 2006 … 2010 … 2013 2014 2015

    Notable
    exits

    Billion Dollar
    Valuations
    Source: Tracxn, Pitchbook

    10 December 16, 2015 · Stefan Grabmann Upgrad Hangout - „Indian Funding Landscape“
    The status today

    6-12 months ago Now

    • Valuation shift • Overheated markets now moderating


    •• Fast
    Limited
    dealpartners
    closures •• Status
    Limited partners
    quo of incumbents are being challenged
    • Time between fundraises decreases by disrupters

    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

    11 December 16, 2015 · Stefan Grabmann Upgrad Hangout - „Indian Funding Landscape“
    Thank you

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