The report is based on the responses from around 50 micro VCs on their investment strategies, portfolio companies as well as their value proposition for such invested companies.
Micro VCs have infused USD 341 million into the domestic startup ecosystem through 730 deals across 566 startups in the past three years, says the report.
Micro VCs typically invest in sunrise sectors, and around 60 per cent of such investments in 2020 were into the SaaS/AI sector, BFSI, healthcare and life sciences, consumer apps and platforms, ecommerce and listing platforms, but 52 per cent of funds in general are sector-agnostic.
IVCA president Rajat Tandon noted that over the years several smaller funds that started a decade ago have not only enabled an established startup-VC ecosystem that we witness today, but have also outgrown themselves, supporting their early bets in later rounds as well to such an extent that some of those startup founders have grown to become angel/VC investors or limited partners themselves.
Madhur Singhal, managing director at Praxis Global Alliance, said micro-VCs are making contrarian bets and supporting untested ideas.
The IVCA is the apex body promoting the alternative investment asset class in the country, promoting stable, long-term capital flow from private equity, VCs and angel capital.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
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