We adopt a three-pronged approach towards investing that focuses on delivering superior returns, mitigating risks and executing healthy exits. A prime example of this is Uniphore, now a leading conversational AI player in international markets and one of our early investments in YourNest Angel Fund in 2014 with an entry valuation of US$ 3.5 mn. When we exited in June 2020, Uniphore was valued at US$ 160 mn (and continues to grow). Upon exiting, we delivered an enviable DPI of 62% with this single exit at an IRR of 42.8%.
We also believe in the ‘Transfer of Trust’ principle: the faith reposed in us by our investors is backed by confidence we place in founders as we become partners in their journey: evidence of this exists in one of Uniphore’s co-founders continuing his relationship with us by becoming an advisor for our current startup leaders. By having a significant minority stake, YourNest retains enough room for future dilution and funding options.
We have also created a benchmark through a rigorous and transparent reporting system that is unparalleled in the Indian VC industry.
|Total Investment||INR 82 mn|
|Exited Value||INR 545.5 mn|
|Multiple of Invested Capital||6.6X|
When we first invested in Uniphore, the conversational AI startup in 2014, it was based in Chennai. Today, its founders operate from USA and Singapore with a global team. Over the years, we worked closely with its founders to co-create a scalable business model. The company, co-founded by Umesh Sachdev and Ravi Saraogi, adapted to market dynamics and pivoted from a ‘Licensed-based’ model to a SaaS proposition. As Uniphore’s enterprise-driven business scaled, it expanded into overseas markets with Ravi relocating to Singapore in 2017 and won validation by serving global corporations. Umesh set up a presence in the US in 2018 to ramp-up business and attract top global talent. It quickly broke into the market with the acquisition of a customer from amongst the Top 10 of Fortune 100 list. The company also saw John Chambers of CISCO (and now JC2 Ventures) coming on board as a lead investor in its Series-B round in 2017.
YourNest’s initial investment in Uniphore in April 2014 was with a commitment of INR 9.9 mn. The product validation encouraged us to double the stake and we increased it further with an investment of INR 62 mn as the company moved to the SaaS model.
At the end of June 2020, the journey of investing with a great team came to its logical conclusion as we exited Uniphore at an IRR of 42.8%, making a 6.6x return. We wish the Uniphore team every success and look forward to seeing them build a global leading SaaS company. In these turbulent times, a profitable cash exit is heartening, and we were delighted to share the proceeds with our investors returning 62% of the fund corpus invested. This also validated our thesis of investing in pre-series A startups with a global vision and a strong team.
|Total Investment||INR 40 mn|
|Exited Value||INR 72.37 mn|
|Multiple of Invested Capital||1.8X|
In August 2020, we completed a second exit with SmartQ, a digital cafeteria software startup in which we had invested in February 2016, being acquired by a strategic acquirer.
SmartQ had identified an opportunity to eliminate queues/waiting period from the face of this world and build an m-commerce model around it by capitalising on digital-friendly users. It started with a mobile app enabling users to order food from service outlets in food courts within 20 seconds. SmartQ’s technology tools helped it to win corporate clients and adoption of this technical know-how by one-of-the largest global players who provide food to the corporate sector – the
UK-based Compass Group. To strengthen its business model, SmartQ had acquired Nextup in late 2018, to integrate an end-to-end cafeteria marketplace.
In the last few months of the COVID-19 pandemic, it further automated the cafeteria experience by offering a decongestion solution and cashless food ordering with its Caf Pass application. A focused play made SmartQ relevant for strategic acquisition within four years of our partnership.
YourNest’s initial commitment in SmartQ was with a commitment of INR 30 mn in 2016 for 14.9% shareholding. We had followed up by increasing our stake to 18% with some of our LPs also participating in the round.
With these two cash exits, we have succeeded in returning 70% of the Fund I corpus to our investors and look forward to more such exits as well.
In Fund I, of the US$ 14 mn corpus, 40% participation is by institutional investors led by the Government of India’s Ministry of Finance (MoF) via SIDBI. In addition, IIFL Seed Venture FoF and Northgate Capital from Silicon Valley have also participated.
In Fund II (US$ 30 mn corpus) we earned the trust of existing investors in Fund I contributing 40% of the corpus. The Sovereign Funds’ participation increased to 35%, with the Ministry of Electronics and IT (Meity) participating via Canbank Ventures in addition to MoF. Local and global family offices contributed 27%, and international LPs another 25% of the corpus.
Between both funds, YourNest has had the privilege of being associated with marquee VCs and PE funds who have either co-invested in our portfolio of startups or have come on board as follow-on investors.
Since I last wrote to you in September 2020, a country that was hesitantly emerging from the lockdown has begun to charge ahead with renewed vigour. If the conversation during the nine months from March to December were mostly about the lockdown and the seemingly unstoppable spread of COVID19, the start of the new year has seen a complete change in the mood of the nation.
We have seen the stock market’s resurgence to record highs, quarterly financial results by benchmark companies indicate that the economy is clearly getting back on track, the rollout of the vaccine within India – and to partner countries – is a sign of hope translated into action. And, to top it all, India’s victory over Australia in the last test match, symbolises a new world order led by India’s youth with a confident, entrepreneurial mindset and a never-say-die challenger attitude.
It is this same attitude that has enabled our startup founders to not just endure the pandemic through 2020, but also emerge stronger from the experience. As I had reported earlier, we were among the first to spot the signs and urged our portfolio companies to buckle down and consolidate every rupee. Through a series of measures, continual advisory sessions and sharing of best practices, we ensured that every single startup weathered the storm so that they would first survive.
But, they say, “to survive, is to live with what is left” – and that is not why we are in business. We exist not merely to live but to grow and scale our investments so that you, in turn, get handsome returns on the trust you have placed in us.
Over the last few months, we switched gears and changed pace to prepare our founders and their teams for a re-emergence from the year that was:
• Just as the year was ending, on December 30, Manoj Kohli, Country Head, Softbank India, spent the better part of that morning in a call that was attended by all our founders as he shared invaluable lessons on leadership and scaling up to meet the demands of global markets. Since then, he has been in active discussions with several of our portfolio companies to advise them.
• A week later, continuing our ‘Friday with Faith’ webinar series, we held an insightful and highly interactive discussion on the ‘Work From Home’ experience with founders of aahaa Technologies, Lavelle, Momspresso and Miko in a panel discussion.
• And, less than a fortnight later, an industry expert on the power of Storytelling captivated our entrepreneurs and opened up new opportunities: several of the attendees will shortly be attending a four-month long workshop on improving their pitches and packaging their brand stories better.
With our focus for 2021 on exits, we continue to ensure that our startups are prepared for a period when they will not just survive but thrive. In the true spirit of Challengineering, our leaders have shown remarkable resilience and reimagined their businesses. In the days ahead, I am confident of sharing more good news and we remain even more optimistic about the future.
I would also like to conclude this report by sharing exclusively with you that, buoyed by the market trends and the performance of our existing funds, we will shortly be launching our third fund – the US$ 100 mn ‘YourNest Innovative Products VC Fund III’. It will be focused on startups from India that are developing life-changing products for international markets using disruptive technologies. These will include domains spanning AI, AGI, Edge. Cloud, digital Security & Identity, IoT, Advanced Robotics and Electronic System Design. I will share more details soon and look forward to welcoming you on board as an early investor.
Thank you, once again, for your continued support and faith.
Stay safe, always.
Sunil K. Goyal
Managing Director & Fund Manager
February 17, 2021
When Charles Dickens, wrote “It was the best of times, it was the worst of times…” he could well have been thinking of 2020. Except that he wrote these opening lines of his classic, A Tale of Two Cities, as far back as 1859. He also went on to write, in the same sentence, “…it was the age of wisdom, it was the age of foolishness, it was the epoch of belief, it was the epoch of incredulity, it was the season of Light, it was the season of Darkness, it was the spring of hope, it was the winter of despair, we had everything before us, we had nothing before us…”
Today, as the world hesitantly – yet, hopefully – emerges from the COVID19-enforced lockdown, these words seem to be even more relevant; and I reflect on how dramatically life has changed while, at the same time, I look ahead with renewed optimism.
At YourNest, our ever-prudent approach has sometimes been questioned, but this is the year when our faith in our mission has been reinforced like never before. We were among the first – and few – VCs to spot the slowdown, and had cautioned all our founders to conserve cash and prepare for tough times. At the same time, we told ourselves that, instead of looking at a half-empty glass, we would see it as half-full and do everything within our prowess to protect your investments, nurture our portfolio companies and ride out the storm together.
I am delighted to share with you that we have succeeded on all three fronts.
To start with, we created history of sorts at the end of June, when we exited Uniphore with a 6.6x return and distributed a record 62% of the Fund I capital in a single stroke. At a more moderate level, we have also exited SmartQ in August, making 1.8x on the overall investment in a holding period of four years and distributed cash proceeds equivalent to 8%: cumulatively, a DPI of 71% of the corpus of Fund I.
Bold and timely decisions like these have helped us keep our commitments to you and have also played a critical role in keeping our portfolio startups on track. Our interactions with them have only increased and we have been intensely engaged with every one of our brave founders right through the pandemic. An exclusive webinar called ‘Friday with Faith’ was held between our founders and partners as early as March 27 to understand each company’s challenges, areas of help and growth opportunities. This was received extremely well and went a long way in ensuring that their mindset shifted from surviving to thriving.
In the true spirit of Challengineering (our vision which we had introduced in the previous quarter) our founders have emerged stronger. While, on one hand, they concentrated on managing their resources better, our inputs helped them re-energise their remote teams to think innovatively and boldly: new product launches, a sharper focus on customer opportunities, reinventing to remain relevant in the new normal, better cost management and creative sales and marketing strategies have all been deployed… you will read more about each of them further in this report.
Our team members – even as they worked from home – also focused on external opportunities: we conceptualised and launched a unique accelerated funding program called SOAR on May 1. In a 14-day period, we received 1,932 funding applications from DeepTech and SaaS startups across the country: a record number that took India’s VC industry by surprise and earned YourNest global acknowledgment for supporting the fledgling startup eco-system during the pandemic. The program was supported by several government and multinational partners and we are in advanced discussions with several shortlisted applicants.
In this report, you will find more details of SOAR and the never-say-die spirit of our Challengineer-founders. The fact that we have weathered this storm together, comes not from me alone but from the founders themselves with whom another webinar was held in mid-August where we took stock collectively and charted out the path ahead.
And this is why, to end on another quote, I believe that we will continue “to strive, to seek, to find and not to yield” (Ulysses by Alfred, Lord Tennyson, 1833).
Thank you, once again, for being with us.
Stay safe, always.
Sunil K. Goyal
Managing Director & Fund Manager
September 8, 2020
As India rightfully claims her place in the new world order, she does so with pride. On the back of millions of the brightest minds who are among the largest STEM talent pool on our planet. Each one a celebration of the Imagi-Nation that we are: a nation that can collectively imagine the future of the world and lead it there. And this is where YourNest is best poised to launch these bold minds and make a significant impact.
What makes us different in an ever-growing world of VCs?
We are Challengineers first.
People who actively challenge dreams and engineer outcomes. Challenging them to make their dreams bolder, engineering constantly to ensure that each dream becomes a reality. We call this mantra Nurture Capital. For us, nurture is much more than care, and capital is a lot more than money. It is with this spirit that we greenhouse and catalyse our entrepreneurs, transforming the best ideas into the boldest businesses ready for the world. In doing so, we also seek to build a unique network of DeepTech Indian Internationals.
Because we believe the enterprise-focused, Indian DeepTech startup is an idea whose time has come.
And the following highlights of YourNest VC Fund II and YourNest Angel Fund reinforce this investment thesis
• India remains a steadily-growing startup nation with a strong VC eco-system: from INR 14,330 crore invested by VCs in 2015 to INR 94,840 crore in 2019 (up to Sept.).
• We have over 30 Unicorns (US$>1 bn valuation) and more than 200 Soonicorns (US$ 250 mn-1 bn) and 650+ Minicorns (US$ 25 mn-250 mn). Three of our portfolio companies – Uniphore and Cove IoT from the Angel Fund – and Miko from Fund II are already in the Minicorns category.
• YourNest Angel Fund significantly outperformed key indices in terms of IRR at 17.9% (as of Dec 31 2019) compared to 10.3% of Nifty and 11.2 % of S&P 500.
• Portfolio companies from the Angel Fund continue to gain investor confidence: while we had invested Rs 43 crore initially in them, they have collectively raised more than Rs 600 crore from external investors.
• Angel Fund investors also showed increased confidence in Fund II: with INR 97 crore (116% of the total Angel Fund corpus) invested in Fund II.
• YourNest VC Fund II also outperformed key indices in terms of TVPI: at 1.38x it was ahead of Nifty (1.13x) and S&P 500 (1.17x) by 20%.
• Finally, it gives me great pride that three of our portfolio companies from Fund II featured in the list of 29 Revolutionary Startups from India by US-based Pagan Research: Miko (ranked no. 14), 3RDFlix (no 18) and Orbo.ai (no. 29). They, as well as Lavelle Networks and Cron Systems were also recognised by Nasscom and Cisco at various levels.
• Topping it all, Sneh Vaswani, Co-founder & CEO of Miko, was inducted into the Hall of Fame by TiE Mumbai with the Outstanding Entrepreneur – DeepTech award in January 2020.
We are also confident that 2020 will see the start of our exiting some of the startups with returns on your investments. As we set out to Challengineer the best Indian DeepTech stars to become global powerhouses, we look forward to your continued support.
Sunil K. Goyal
January 31, 2020
For an entrepreneur and an investor, every decision for something is a decision against something else. Likewise, with life. We operate in a world of choices every day, every minute; and some of our decisions turn out to be right, while others appear to be questionable at that moment. Time passes and we look back only to realize that what seemed wrong, was not, because every experience teaches us something new.
I say this today, not nostalgically but confidently, as I sit and look out at the future we are creating collectively. At the same time, I am reflecting on the choices I made eight years ago in 2011: to exit an international role in South Asia’s largest telco, to enter the volatile world of venture capitalists, to create the only team of partners that includes a leadership coach, to seek founders whose ambitions went far beyond their tech-enabled ideas… these were all decisions that did not come easily.
But perhaps the one choice we made that seemed the most difficult was that of focusing on startups whose business would be built not on the more popular B2C sector, but on enterprise-led B2B domains in the DeepTech space. We made this choice early on because we saw the coming shift, not just in India but in global technology trends. B2C valuations had become inflated and startups required vast resources to attract consumers. B2B companies, on the other hand, were attractive and the opportunity to work alongside these founders and help them scale up for international markets turned out to be a rewarding challenge.
As I write this today, I can say with even more confidence that our investment thesis has turned out to be spot on:
As we continue to seek out promising startups, our positioning as a DeepTech B2B-oriented VC fund gets stronger: in the last 18 months, 65% of the interest received has been from B2B startups, of which 34% are creating DeepTech solutions.
I can also report with increased confidence now as the audited results clearly put us in the top quartile with some pathbreaking metrics:
In conclusion, on behalf of the team here at YourNest and every one of our founders, thank you for your continued faith in our abilities, and for your patience, which will be rewarded soon.
Sunil K. Goyal
August 20, 2019
Several metrics showcasing the strength of the Indian tech startup ecosystem in NASSCOM’s latest report indicate that we are approaching escape velocity. India added eight new Unicorns in 2018, and now has the third largest number after USA (126) and China (77). More importantly, the time to attain billion-dollar valuation is now 5-7 years, second only to China (4-6 years).
2018 saw, for the first time, an India B2B SaaS company – Freshworks – joining the Unicorn club within eight years of being founded. Another surprise entry was Udaan, a B2B online marketplace, that achieved Unicorn status in just two years since inception. I am happy to report that we, too, have SaaS and B2B online marketplace startups in our portfolio. I must share that in December, the past President & CEO of Freshworks for North America – Dilawar Syed – held an interactive learning session with our entrepreneurs to share his experiences on building teams and culture for global expansion.
As we enter another year in our chapter, the values of prudence, patience and perseverance with which we built YourNest Venture Capital since 2012 have manifested themselves in both the funds: the YourNest Angel Fund – Scheme 1 and YourNest India VC Fund II. We remained true to our investment thesis, and invested further in DeepTech, enterprise-oriented B2B startups. 2019 does hold the promise of at least one portfolio company, reaching the INR 1,000 crore valuation mark.
However, nothing proves this more than the performance of YourNest Angel Fund whose Portfolio IRR is at 22.6% (since inception) with the NAV moving up from INR 16,389 as on December 2017 to INR 18,687 as on December 2018. With this fundamentally strong foundation, we are now focusing on exits from the first fund and are seeing strong valuations emerge in our portfolio companies.
For Fund II, the team at YourNest Venture Capital continues to balance the need for strong investor returns with careful investee selection. We reviewed 2,767 startups since January 2018 before shortlisting 320 of them and, eventually, investing in three: this method is very much in line with our belief that DeepTech and B2B startups require intensive analysis before we can commit your capital to them. We have offered two fresh termsheets for investment in Q4 FY19: an SD-WAN venture and a patent-led Computer Vision tech startup. The deal-pipeline continues to be compelling with extensive deliberations amongst our partners to pick potential winners. We are delighted to inform that, for the second fund, we are all set to cross the INR 300 crore fund corpus target: extending the fund-raising period till July 1st 2019 will allow us to invest in a larger number of promising startups and increase our shareholding in the most promising ones.
Within the YourNest team, this principle of ‘transferred trust‘ remains an abiding motto: your investment stays in safe hands as we identify winners and manage these funds even as we nurture bright, committed entrepreneurs to scale up and reach out to global markets wherever possible.
I am confident of sharing some path-breaking developments in the next quarter and, as always, look forward to your continued support.
Sunil K. Goyal
January 21, 2019
In a world beset with challenges, it gives me immense pleasure to report that our focused approach to identifying and investing in specific startups is starting to pay off.
As you know, we launched the fund with one clear objective: we would not adopt the spray-and-pray approach but would, instead, buckle down and look at domains that would give your investment not just healthy returns, but do so efficiently.
And with a Portfolio IRR of 24.5% in the first Fund, I am happy to report that we are on track as per our investment thesis. Our first fund of US$ 14 mn (INR 90.25 crore) is doing well with over a third of the investments showing strong potential to individually deliver a significant part of the fund corpus – giving the fund a visibility of a 5x return. The six companies (representing 51% of the invested capital) namely, CoveIoT, Momspresso, Uniphore, Rubique, SSTS Inc and GolfLan, have raised subsequent rounds at a 4x+ of our initial investment round. The next four portfolio companies (24% of invested capital) have independent investors leading the subsequent rounds at 1.3x-2.2x of our entry valuation.
For Fund II, the team at YourNest has the most extensive access to prospective investees, and we give our investors exposure to high-growth, under-the-radar, tech start-ups in India. Consequently, we have succeeded in maintaining a funnel approach that has reviewed 9,048 startups since January 2017 before selecting around 9% of them and, eventually, investing in seven; this patient and prudent method is very much in line with our belief that DeepTech and B2B startups require intensive analysis before we can commit your capital to them.
The popular B2C technology domain remains active but demands extensive infusions of capital whereas B2B and DeepTech funding continues to grab half of the early stage venture capital investments. As India moves from a services-led economy to a ‘Product-Nation’, we are seeing increased activity in IP/Patent-led ventures that include Product SaaS, Business SaaS, Tech Products and Platforms as well as Connected Devices like IoT, Robotics. We are confident that several of our portfolio companies will scale up and establish their presence outside the geographical boundaries of India: the process has, in fact, already begun with companies like Uniphore, SSTS Inc (p-cloudy), KaHa Pte (CoveIoT) and GolfLan.
We expect the markets to remain volatile in the mid-term and will continue to stay focused on low-profile, high-potential opportunities where we have the capability to nurture founders and ensure that they succeed, globally.
In conclusion, I would also like to draw your attention to our new corporate identity: the revised logo retains the ethos of our original design but lays stronger emphasis on our abiding philosophy of ‘people-first’. As we reach out across the world and reinforce our commitment to nurturing global market leaders from India, we look forward to your continued support in this mission.
Sunil K. Goyal
September 15, 2018
In Nov’17, your fund was recognised as one of ‘Top 10 Performing PE/VC across Vintage & Sectors’ by Preqin Insights on Alternative Assets in India! We are the “Youngest Fund” in India to be featured on this list and amongst the two VC funds to make the top-rank along with well-established PE and Real Estate funds. While we achieved this recognition at an IRR of 17.78%, we look forward to this number moving upwards as the investments mature and get ready for exits.
India’s latest budget proclamations provided further push to “StartUp-StandUp India” and the effort towards digitization:
The government has laid focus on development of technologies in digital space, machine learning, artificial intelligence, internet of things, 3D printing etc. and NITI Aayog is expected to initiate a national program in the area of artificial intelligence.
Closer home, the second fund has made firm commitment towards a Robotics start-up based at Mumbai. Two of our start-ups showcased their products at CES, Las Vegas in Jan’18. Both have been well received by global brands and channel partners to distribute products internationally. We are very encouraged by this and will continue to keep nurturing such high potential portfolio companies while enabling the rest.
While the stock markets become increasingly volatile, our portfolio in terms of the mix of companies, sectors and time diversification, has been designed reasonably well to insulate us from such volatilities. We continue to hope your allocation to start-ups and venture capital continues to grow for rewarding returns.
Continuing onwards & upwards!
Sunil K Goyal
The most fascinating times in history have been filled with tumult and upheaval. The participants who were living through these momentous changes were probably experiencing trepidation and pain – till the impact of those changes settled in to bring about astonishing growth. And the cycle continued to repeat itself.
We live in not just interesting but very exciting times. And the ‘curse’ of excitement keeps the inveterate explorers awake and searching for opportunities. In change and slow down they seek the origin of the next wave.
The rapid changes in world – and closer home in Indian polity and economics – have been impactful and far reaching. Our industry has seen the changes in financial liquidity, and on the quantum of deal flow.
The ultimate measure of a man is not where he stands in moments of comfort and convenience, but where he stands at times of challenge and controversy (Martin Luther King, Jr.). And those who stood firm in these challenging times will now get the benefits of the tide turning – Rs 7,000 crores back in the VCs balance sheets, large funds like SoftBank making a massive investment in the Indian companies, hunger for investment in the Indian ecosystem increasing. With B2B companies being sought after by marquee investors, YourNest is extremely well placed to benefit from such interest. Furthermore, the number of deals for series B and C funding has gained momentum, and as a natural corollary, the portents are strong for the immediate energising of the Series A space.
The first green shoots, of a good economic season for startups, have emerged. And your company is ready to capitalise. I hope you will enjoy reading the report which highlights the excitement we feel, as the tide changes.
In the words of Ralph Waldo Emerson – What lies behind us and what lies ahead of us are tiny matters to what lies within us. And within us lies the firm belief of a very exciting future.
Sunil K Goyal
Another quarter, another report, another opportunity to share the excitement that is this journey to becoming the Best VC fund in the country. They say when the root is strong, the fruit is sweet. With your continuous support and guidance, we continue to build stronger roots. In September 2016, Team YourNest got a big boost with the joining of Dr Vivek Mansingh as a General Partner. It now gets another fillip with Satish Mulugavalli adding his considerable expertise to YourNest and making the YourNest team the most unique and powerful team for any pre-series A fund anywhere!!! We now have strength in technology, business building and exits along with a strong presence in south and north India. And this benefits both Fund 1 and Fund 2.
It gives me a lot of pride to share that our Advisory Board has been strengthened with the joining of Mr Sharad Sharma, Ashish Gupta and Dr Rishikesha T Krishnan. You will find more details about them in the report.
In the recent past, the startup world has seen a number of delusions erased. It has been rocked by news of devaluations, closures, and of supposed fund paucity. And in all this, your invested companies have been steadily growing in value, with 9 of them having crossed annual revenue run rate of USD 2 million, 9 having received higher value up rounds, host of acclaimed VCs and investors like IDG, Kalaari, Venture Nursery, Mr K Gopalakrishnan, etc. co-investing in your companies, and the NAV continuing to grow. These small developments feed our hunger to work harder and better to deliver on the potential of these fantastic companies in our portfolio. Let me borrow a phrase from Bob Marley : Though the road’s rocky, it sure feels good to me.
The famous poet Kabirdas ji said:
Dheere dehire re mana, dheere sab kuchh hoye
maali seenche sau ghada, ritu aaye fal hoye.
Meaning: The gardner toils for years and keeps on watering (nourishing the plant). The fruit appears when the season is right.
The signs of the right season are on the horizon.
Sunil K Goyal
Even before the printer’s ink dries on this letter, the world, as we have known it, would have changed AGAIN. Recently there was the Brexit. Then Prime Minster, Mr Modi’s waving of the wand to make the high denomination notes disappear. And now the incredibly tight competition in the US presidential elections which would yet again bring forward a momentous change in American real-politic.
That the world changes continuously and rapidly is known to all. That change happens to us is experienced by all. That we are gainers from it, happens to very few. In fact, Dr Ken Robinson, in his famous Ted talk, points to the need of bringing children up with one critical faculty – to learn to deal with an unknown future. A future that is not just unpredictable, but a completely uncertain. Those that develop the ability, are the eventual winners.
Your company, YourNest, has been built around this very concept – of creating the change that is called the future. Every generation, every civilisation that has grown has been able to adapt to change, and meet changing expectations. The very best have led by defining the change.
Our 16 invested companies from the first fund – into which we started investing 4 years ago – are building businesses on the needs that seemed futuristic then but are already pressing demands. They will be showcasing their capabilities during the Investor meet on 12th November, 2016.
But change is so rapid in today’s technologically driven world that a new series of challenges await us as we move into the future. Our recently launched 2nd fund is aimed to help build the companies that will solve the problems of that fast approaching future.
Many of us have missed out on opportunities in the past. They say opportunity doesn’t knock, it sneaks it quietly. But we are announcing it loudly. This time in the form of YourNest India VC Fund II. I invite you to strengthen your hold over the future by participating in this fund. You will find the details of the fund on the next page.
With building excitement over the unfolding future.
Sunil K Goyal
A Zen saying goes : The value of a room lies not in its walls but in the space within.
While the walls provide protection and define the space what can happen within those walls is what really matters. And so it is with any Venture Fund. The fund size and investment thesis are the walls that provide the space within which the exciting play of nurturing great ideas into great companies takes place.
Our first fund of Rs 90 crores (USD 15 million) provided the space and security to 16 ideas – curated from 8000+ proposals – to be nurtured in their early growth. It has, in its 5 years of existence, endured zero-mortality, enabled by a high-touch engagement model of the 3 Fund managers, 4 advisors and multiple mentors and coaches. The fund is poised to deliver attractive returns – we see a clear opportunity for an over 40% IRR – as many of the invested companies get into the next growth rounds.
In these 5 years we have built together a strong foundation for early stage investing, validated our investment thesis and are now become convinced we have a winner on our hands. It gives me great pleasure to announce that we are ready for setting up a bigger sibling fund.
Welcome, dear Investors, to ‘YourNest India VC Fund II’ – Rs 300 crore, SEBI approved fund with a plan to invest in 25-30 startups, in technology and technology enabled opportunities, with focus on companies solving the needs of the digital ecosystem by leveraging Internet of Things, Electronic System Design, Artificial Intelligence, advanced Robotics, Mobile Internet, Cloud Technology, Digital Payments, verifiable digital identity, and automation of knowledge work.
Fund II will continue to focus on us leading the early stage (Pre-Series A) investment rounds in these hand picked companies. The Fund is open for subscription for you to continue to invest in disruptive technologies, with the cash outflow for the investment spanning over next 6 years.
It is with tremendous joy that I share with you the coming on board of Dr Vivek Mansingh, as a General Partner in YourNest. Dr Mansingh is currently the Chairman of AxisCades, and brings an enviable record of building and leading technology giants like Cisco and Dell in numerous capacities. He is also a researcher, with many patents to his name, a committed startup investor, and cherished mentor and brings with him decades of experience from the world of technology. On behalf of all of us, I take this opportunity to welcome Vivek aboard YourNest.
I also take this opportunity to express our deepest thanks to Religare and their entire team for having been the bedrock of dependability and support throughout their association with us and in helping raise our first fund. It is with regret that we bid adieu to them as they exit various asset management businesses, including YourNest, as part of their internal restructuring exercise and wish them success as they continue to lead in their chosen areas.
As a final word, I look forward to meeting you all at the Investors Day to be held on 12th November, 2016 in New Delhi for which you will soon be receiving invitations with details.
Best Best Wishes
Sunil K. Goyal
September 15, 2016
Spinoza said, ‘You must look at things in the aspect of eternity’ and Ben Graham made it a basic dictum for his tenet of value investing. And that, indeed, has made the difference in the way we have been selecting our investee companies – not ones that will blink fast and disappear, but ones that may survive the test of time.
What a year 2015-16 is turning out to be 3 years into its journey, YourNest began 2015 with 7 investments. In the course of first nine-months, there were external up-rounds and bridge funding in 5 and an equity swap in one.
There was more action in these 3 quarters with 5 new investments completed, and 3 more in the final stages of completion bringing the search for portfolio companies in the current fund to completion. And your fund now has presence in most ‘hot’ sectors – Consumer Internet, Online Market Place, Market Aggregation, B2B Marketplace, Software as a Service (SaaS), Platform as a Service (PaaS), Marketing-Tech, Heath-Tech and Analytics.
As the infant VC- space grows into a toddler, it is showing quick signs of maturing. To begin with, marquee VCs have raised large India focused rounds (USD 2.5 billion, at last count) for investing in the Indian growth story. This capital commitment promises that fund allocation for start-ups continues to be buoyant. There is, also, a clear change in approach from quick exits to nurturing businesses to their full potential. The Swedish investors AB Kinnevik recently stated ‘Many investors, not in a hurry to monetise’. There is also a visible shift from ‘scattering funds, to deeper commitments.
In another great sign for the industry, the government too has shown decisive, positive intent with its commitment for the sector, highlighted by a slew of initiatives. “Start-up India Stand-up India” is paving the way for ease of doing business, attracting domestic and foreign capital to the start-up ecosystem, incentivising entrepreneurship, and encouraging industry academia partnership. Further stimulus is expected as the government readies to act on an extensive report by the “Alternative Investment Policy Advisory Committee” headed by Shri N R Narayan Murthy.
The RBI too has stepped in to nourish the toddler industry, with Mr Raghuram Rajan making a commitment to ‘take steps to ease doing business and contribute to an ecosystem that is conducive for growth of startups. The RBI plans to help startups across sectors receive foreign venture capital investment and also enable transfer of shares from foreign venture capital investors (FVCIs) to other residents or non-residents.
YourNest has a young portfolio. The average investment holding period is only 15-months. Our focus is to nurture them speedily to their full potential, and we actively invite you to support these start-ups to leverage your areas of strength.
“And once you are awake, you shall remain awake eternally.” ? Friedrich Nietzsche
Sunil K. Goyal
January 31, 2016
With the new policy for Setting and Managing Venture Capital funds in India announced by RBI, manage in India is set to become a reality.
RBI last week has allowed FDI on automatic route in Venture Capital Funds (VCF) and Private Equity (AIF). With this, the long standing demand of the India VC industry for unshackling has been fulfilled by the Government and augurs well for local fund managers like YourNest. It will ease access of risk capital for startups and unlisted companies and investment by a India managed Fund like YourNest shall be treated as domestic capital, even if significant corpus of the underlying fund is raised overseas.
The Reserve Bank of India (‘RBI’) in order to further boost the entire investment environment and to bring in foreign investments in the country has recently permitted foreign investment (by Persons Resident Outside India including NRIs) in Investment Vehicles [defined to include SEBI registered Alternative Investment Fund (‘AIF’), Real Estate Investment Trust (‘REIT’) and Infrastructure Investment Trust (‘InvIT’)] under Automatic Route.
A link to the press coverage received by the announcement is embedded here.
This week, Washington Post also did a story on Risk-averse India embraces Silicon Valley-style start-ups“. It covered YourNest and MyCity4Kids to showcase how India start-up scene is gaining traction and new age angel investors are getting attracted to this asset class.
Sunil K. Goyal
November 30, 2015
The quarter gone by has been quite mixed in terms of the way the ecosystem has evolved.
On the brighter side, there were things like more and more companies getting into the USD 100mn valuation window (63 in October 2015 vs. 39 companies in May 2015), and new initiatives by the government in the form of Start up India – Stand Up India.
On the flip side, valuation expectation hit a new high, and your Fund chose to walk away from a few start-up deals due to expectation mismatch with the entrepreneurs. There is even news of some high profile startups shrinking operations due to lack of follow-on investments. While this looks like a downtrend, the softening of valuation – post market over-exuberance – is good in the overall interest of the eco-system and can be viewed as a market correction. And in-spite of the very large number of engineers graduating from Indian Universities, talent availability for tech-teams continues to be a challenge. We hope the situation may start to ease given softening of quick up-rounds in cash burn business models.
Another interesting development is that YourNest’s investment thesis – which is focused on revenue earning business models – is gaining more relevance with every passing phase in the evolution of the VC industry internationally impacting on the selection criteria for investing in businesses. Even as we go to the printers, we continue to pursue due-diligence in Arya (deep learning platform), Momark (customer engagement platform for offline retailers), Aahaa Stores (B2B supplies platform) & OpKey (testing automation platform) in keeping with our investment thesis.
In another development, Oct’15 saw fresh up-rounds in –
All this will continue to impact positively on the overall NAV of the fund. You may have come across an announcement made on Bookmycab’s merger with Jugnoo, however, the fund raise did not go as envisaged for the merged entity. Since then, we have identified another opportunity and are in an advanced stage for closing the deal with another existing market player.
You may recall that we had on-boarded two institutional investors in June’2015 namely, IIFL Seed Ventures and Northgate Capital. They shall be playing an important role at the Advisory Board level, particularly with a focus on recommending and approving changes in the interest of fund and the investors. In a meeting held on Nov 9th 2015, the advisory board has recommended some changes in PPM. We shall be sending these for your comments and approval shortly.
We at YourNest wish you and your families a happy and prosperous Samvat 2072.
Sunil K. Goyal
November 20, 2015
This report comes to you after a gap of 7 months. While we have been sending you updates in various ways, the closing of YourNest Angel Fund – Scheme 1 and its related activities – have led to the missing of an interim report. Thank you for bearing with us.
We take this opportunity of thanking all our investors whose vision has enabled us to close our First Fund with a commitment of INR 83.40 crores (INR 834 million). YourNest is a tale in the making – a tale of the commitment of 145 visionaries, the support of 3 institutions, and of the dreams of India’s future.
‘From little acorns grow big oaks.’
And they grow at their pace – nourished by nature’s bounty. So too will our little startups grow into mighty corporations – with the nurturance, support, guidance, energy and effort of all the stakeholders. Each of them treads a path unknown. These entrepreneurs chucked up cushy jobs and opportunities in the forefront of creating a better future. They are our true heroes. They are the ones we bet on.
And this is a serious bet. In Q1 FY16 the number of deals received were 760 as compared to 260 a year ago. Of these very few passed muster and won our confidence. Since inception we have committed funds and support to only 7- and are in advance stage of investment assessment in another 5 – OpKey, InvenZone, BestDealFinance, Aahaa and MoMark in these 2 quarters bringing the portfolio companies to 12 within this calendar year –
Going forward, there are some very exciting opportunities we are addressing at the moment in spaces such as Mobile Internet, Market Aggregation, and Internet-of-Things (IoT). These brilliant ideas with strong business plan and supported by strong teams are our likely future investments.
Out of the total Corpus of Rs.83.40 crores, we have committed nearly 60% to these 12 start-ups. We are well positioned to make additional commitments and achieving a strong portfolio of companies within the Capital Commitment period ending on March 31st, 2016.
Sunil K. Goyal
September 22, 2015
Interest in early stage investing in India is seeing an unforeseen frenzy. More and more eminent personalities – be it Mr Ratan Tata, or Mr Azim Premji – are getting on the bandwagon as are large corporations. The leading consumer Internet players such as Flipkart, Snapdeal and even the established technology player like Infosys have set-up internal Mergers & Acquisition teams with a firm eye on this market. Clearly, early stage investing is here to stay.
We, in India, often see the value a business creates for the investors during exits. Exits are the primary source of value realisation for early stage investors. Recently, Twitter acquired ZipDial, a start-up where the angel round was led by one of the founding members of YourNest.
YourNest entered a new phase in this quarter with Religare Global Asset Management (RGAM) becoming our partner in the Asset Management Company (AMC) along with committing capital as Co-sponsor in the Fund. RGAM, as many of you might already know, has a stated policy of partnering with best of breed asset managers in various alternative asset classes and has established itself as a multi-boutique asset management platform. RGAM’s affiliate Northgate has USD 4.2 billion Assets Under Management (AUM) as a Fund of Funds and direct venture capital with strong relations within VC industry in US. Through this alliance with Religare, YourNest gets access to the hotbed of new ventures and venture capital – the Silicon Valley.
On the portfolio front, we are glad to inform you that YourNest has invested recently in our 6th Portfolio Company – www.golflan.com. Golflan is in the pioneer in online aggregation in the explosive growing international golf market bringing easy access of Golf courses for golf enthusiasts around the world. It has a unique gold tee-time booking mechanism for its members and golf-concierge facilitation for banking customers of leading credit card providers. Its business model allows it to create values in multiple ways and is YourNest’s first investment in the lucrative sports market. With this funding Golflan will be able to strengthen its technology product platform allowing it to offer more services and the develop the network of golf courses.
The opportunities pipeline continues to grow and the quality of deals has also shown a marked improvement, indicating more exciting times ahead. And with the pace of contributions to the fund picking up we are very excited at the prospect of having great companies to invest in and enough money to see them succeed. And make you, dear investors, very happy.
With best wishes for a great Budget
Thank You and Best Regards
Sunil K. Goyal
February 25, 2015
In my earlier letter, I had stated that we have never seen such “across the board” optimism in the country. I had not imagined that it will morph into the kind of snowball that it has for YourNest in particular, and the start-up ecosystem in general. We have seen enhanced activity in our deal-flow, wherein we received more than 460 investments proposals this quarter, almost 3 times more than last year. This results in YourNest having a very healthy pipeline of investible start-ups for the next quarter.
I am glad to inform you that we have signed to invest in our 5th portfolio company – www.nlpcaptcha.com. NLP Captcha offers brand engagement with “guaranteed customer attention” & “better recall”. It is about to change the evaluation criteria in digital advertising. While we signed the SHA, they made their first international sale in Spain with Bridgestone as a client.
Last quarter, post Facebook’s acquisition of Little Eye Labs, Yahoo announced its first ever acquisition in India, that of Bookpad. We see this trend only increasing as large global corporates eye innovation led Indian start-ups as they build scale on the back of 600 million plus internet connected Indians in the coming 3-4 years. At YourNest, we are already building businesses for acquisition by such global giants.
We have planned for a meeting of all our investors this quarter and are bringing the founding teams of our portfolio companies together to interact with you. The first “YourNest Investor Day” is planned in Delhi for Sunday, November 30th, 2014. Please do block your calendars and look forward to a detailed agenda before the end of this month.
Seasons Greetings & Happy Diwali
Sunil K. Goyal
October 20, 2014
The mood in the economy is definitely on the upswing. The outcome of the largest electoral exercise conducted on this earth, and the subsequent policy actions of the new government has filled each one of us with hope and expectations of prosperity. Some of the lead macro-economic indicators are being seen as harbinger of good times.
In my career, I have never seen such “across the board” optimism. This is despite the fact that I was fortunate to start my career in an economically independent India of the 90s. Hopefully, effective governance and prudent fiscal management will now support our economic freedom. Going forward, each incremental effort of our nascent start-up ecosystem and entrepreneurs should yield exponential rewards.
These are still early days, and words have to be followed up with concrete policy action when it comes to good governance.
At YourNest, we too are experiencing the exuberance that is being felt in the general economy and are moving forward with confidence and conviction. This is reflective of the rising investor trust and confidence in start-ups through fresh capital commitments into the fund starting April’14.
At the portfolio level, MyCityKids is consistently improving its engagement with the parent, as is evident in the ever rising global alexa-ranking that it enjoys, with non-paid (organic) traffic close to 90%. Bookmycab continues to grow at 10-15% month-on-month with soft launch in Kolkata & plan for Delhi in the coming months. Uniphore is on-boarding an investor with deep pockets and international exposure. PoP is democratizing its analytics to win the confidence of industry players.
Sunil K. Goyal
July 11, 2014
In keeping with our philosophy of investing in cutting edge ideas with sound teams, we are happy to announce our 4th investment in Chennai based Uniphore Software Systems. The startup was incubated at Indian Institute of Technology, Madras (IITM) and operates in the speech recognition and voice biometrics area. Uniphore has already built sizable recognition and is serving 3 million customers and 30 clients in the fields of agriculture, banking and insurance. The company is the first to offer voice solutions in 14 Indian languages and is building an impressive client list that includes global MNCs like Amex & Airbus.
It was with a sense of elation that we received the news of ZipDial being ranked 8th amongst the “World’s Most Innovative Companies 2014”. This Indian company’s innovation of “engaging customers on a missed-call” competed with established players like Google, Dropbox, Airbnb, Nike, Apple, Amazon and so on. It was a big fillip to our belief in the ability to identify bright ideas as I had led the angel investment in ZipDial.
Innovation, and not revenue, defines the value of a company has been brought into the spotlight with facebook’s declared valuation of USD 19 billion for WhatsApp. It is a resounding affirmation of YourNest’s investing philosophy and once again highlights the opportunities that tech and mobile spaces offer for value creation.
While worldwide the economies and polities, and even the weather have been disrupting daily life and creating setbacks due to tumultuous changes, the angel investors and innovators are a tribe that thrive on it. The best times are yet to be, and as the poet said:
“Grow old along with me
The Best is yet to be.”
Sunil K. Goyal
February 26, 2014
YourNest’s entrepreneurial journey, that started 20-months ago, has helped us gain perspective on various parameters of success for an early stage fund. We believe smart investors demonstrate capability to invest in the right idea, early. They are not only supportive, collaborative and friendly but also back the venture & stay invested. This helps build successful, performance centric teams and creates powerful brands. Most importantly, they know when to exit.
Our belief that “people – their vision, beliefs, values, individual initiative, creativity and experimentation – rather than the technology or the business models, drive the start-ups”, is strengthening. It is all about execution, for us, to enjoy a healthy strategic exit. Execution for a start-up does require entrepreneurial freedom and a talent pool.
In the last few months, we saw our start-up creating value through their initiative and experimentation –
Our conviction in our start-ups is reinforced by recent investments made in Zomato.com (Rs.227.6 crores valuing it at Rs.1000 crores) and Olacabs (Rs.126 crores at an undisclosed valuation). These decent valuations at early stages of business, during tough economic conditions, is a validation of the ability of first generation entrepreneurs’ to create value for their investors.We stay committed – to our investments and participation in subsequent rounds of funding in our portfolio companies.
Sunil K. Goyal
November 15, 2013
‘India has the youngest growing population in the world. And that population is as innovative as its counterparts in the ‘developed’ countries’ – says Dr. Nirmalya Kumar, Professor of Marketing at London Business School. Over 750 R&D centers have been set up by MNCs in India employing an astounding 400,000 professionals, he points.
Schumpeter, one of the most influential economists of the 20th century, said innovation is critical to economic change. This economic change revolves around innovation, entrepreneurial activities, and market power. The drivers of innovation or technological change of a nation comes from entrepreneurs or ‘wild spirits’. He argues that technological innovation often creates temporary monopolies, allowing abnormal profits. And this is what any angel fund aspires to sow and reap.
In the last 12 months we have witnessed a vibrant brand of innovation unfolding in the lesser-known early stage entrepreneurial market. We received a slew of new ideas – an average of 75 new proposals every month – across industries, and across domains. They are a mix of product and process ideas, complex and simple constructs, audacious visions and opportunistic responses. The brains behind them are brimming with energy and optimism and represent the DNA of an ambitious, confident, risk taking, entrepreneurial India.
In his TED talk in 2005, Richard St. John revealed the 8 secrets of success – Passion, Hard Work, Being the Best, Being Focused, Pushing Oneself physically and mentally, Serving Something of Value, Having a great Idea and Persistence. These have been the hallmark of the 3 companies we have invested in viz. Proof of Performance, MyCity4Kids and BookmyCab. Their journey has just started, but each of them demonstrates a strong belief in their ideas, astonishing energy, dogged perseverance and indefatigable spirit. All they want is the chance to prove themselves – and your best wishes.
We at YourNest feel the exhilaration – as well as the anxieties – of a one-year old entity as we complete our first year of operation. Your trust and confidence in us has made this a memorable and eventful year. The challenges of FY13 have been educational and the developments have reinforced our belief in our business and business-model.
Sunil K Goyal
June 27, 2013
Startups need continuous nurturing and lots of nourishment – emotional, intellectual and financial. As with children, the initial phase puts into place the organisational values, strengthens entrepreneurial belief and lays down the DNA of a process driven organisation with objective decision making capabilities. And so it is with the first 3 startups your fund has invested in. Plans are detailed, checklists prepared, projects activated and monitored, the best teams identified and put through the paces to build synergies -victories celebrated.
In the coming quarter, each of the 3 portfolio companies will have crossed the 300 day landmark post investment, allowing us to assess growth and development, hits and misses objectively.
MyCity4Kids demonstrated true entrepreneurial instinct capturing an opportunity during Diwali. It tested a new entry pack that received tremendous response. Having now got its top team in place and a fully manned organisation, there is palpable excitement about potential growth in the coming quarter.
Proof of Performance (PoP) has won a prestigious contract from DAVP, the advertising arm for the Government of India. During last quarter, the product offering has been customized for media industry & advertisers by a team of three industry veterans working with PoP as consultants. The solutions are being recognised as ‘need of the hour’ by the Industry and we expect this to convert into substantial revenues in the near future.
Bookmycab has already made its presence felt in Mumbai and we are very pleased with the way the brand has become visible in the city. There have been some niggles in the technology platform but those are getting resolved even as I pen these lines. With some key senior team members likely to join in the next few weeks, and technology stabilising, there is an expectation of large scale ramp up in business. There is a positive trend in connected cabs coming for recharge. The advertising space is also showing progress with the first advertiser renewing the contract post a 30 day trial. Life has just begun at Bookmycab.
We had to let go of some apparently good opportunities after investing substantial time. The robustness of our due diligence process highlighted potentially drastic shortcomings in a venture that we had issued a term sheet to in Sept’12. This is the third deal this year that we did not go ahead with, post issuance of the term sheet. On two occasions, it cost the company broken deal cost.
The quality of deal flow is continuously improving. More and more budding entrepreneurs are reaching out to YourNest. We received over 800 deals in the year 2012 and 2013 looks even better.
Sunil K Goyal
January 31, 2013
‘The times, they are a changing’ – must be the most repeated statement and yet it holds true every time. “Every crest is followed by a trough, and the trough, inevitably, by the crest.” And so the waves of fortune lap the shores of effort. The best amongst us know how to make the most of the changes, and use changing situations to change fortunes.
YourNest endeavors to find those Indians and Indian businesses that seek to dive deep into the ocean of opportunity and reap the pearls of its great bounty. Since our first close, we have invested in 3 such ideas. And in a short time, these warriors of the corporate world have grown – to over 100 bright, energetic people, 3 completely different businesses, in an investment of just around ?4 crores. We continue to search for the brightest amongst the bright ideas and the most passionate amongst the passionate.
We have also actively supported our investee companies in building their teams, encouraging them in their effort to enhance speed to market and product development. We have tried to be sounding board for their ideas, and encouraged them to develop roots and wings – wings to soar high, and roots to remain firmly grounded in reality.
The changes around us are also palpable. This year has witnessed a major fillip for “angel funding and early stage venture capital” with a comprehensive recommendation by Planning Commission committee on “Creating a Vibrant eco-system for entrepreneurship”. YourNest, we are proud to share, is championing this cause and is leading representations with relevant ministries for spreading awareness on how they can enable Indian start-ups and early-stage venture capital to prosper.
India’s presence in the start-up world is on the up. A recent study by Kauffman, the foundation for entrepreneurship highlighted that of the immigrant founded tech-companies in US 33.2% of the President, CEO, CTO’s are of Indian origin. Indians have founded more such companies than immigrants born in the next top seven immigrant-founder-sending countries combined (China, the United Kingdom, Canada, Germany, Israel, Russia, Korea, Australia, and the Netherlands). The genes have always been there. All that’s needed is a more fertile eco-system in the country. And with your support, foresight, and encouragement, YourNest will endeavour to continue to build on the opportunity that every change presents.
In the end, I would like to extend Seasons Greeting and Warm wishes to you and your family from the YourNest team.
Sunil K Goyal
November 6, 2012
The year 2012 has started on an encouraging note for early stage venture capital and angel investing in India.
The regulator formally acknowledged that venture capital has positive spillover effect on the economy, and has formulated Regulations imparting higher level of transparency & disclosures. The Finance Bill 2012, has clarified the tax pass through status for investors in SEBI registered funds, and also extended concessional tax rate of 10% on the long-term capital gain from investments in Venture Capital Undertakings by a Foreign Investor (this is in addition to 10% rate for the Non Resident Indian).
The momentum has continued in this space with over 50 investments announced in Q1 on the back of nearly 200 investments that were made in 2011. The enhanced activity being seen in the early stage is visible from the multipilicity of platforms that the entrepreneur has access to as they conceptualize and execute on innovative business models. These include programs like like The Economic Times Power of Ideas in collaboration with Centre of Innovation, Incubation and Entrepreneurship (CIIE), TechSparks, The Pitch, Start-up Weekend as well as the events hosted by TiE, Indian Angel Network, Mumbai Angels, VCCircle to name a few.
Post the initial closure announced in the last week of March 2012, YourNest is now uniquely positioned to identify business models coupled with great entrepreneurial teams that build on consumer and business insights based on the emerging themes in India including – attitudinal shift to immediate gratification; Internet penetration; mobility; media; shift in IT from services to products; to name a few.
YourNest’s maiden investment is in Proof of Performance (PoP), a company offering cloud based video analytics of the real world video archives and solving unmet customer need. Our second investment is in www.mycity4kids.com, an online market place that is a hyper-local solution for kids related services and products. Details of these investments can be found in the subsequent sections of this report.
This is our first annual report. We have tried to keep it lucid and simple. Hope you enjoying reading it.
Sunil K. Goyal
June 30, 2012
It has been a just over a month since I stepped away from the corporate sector to concentrate on angel investing full time. Having researched the economy closely for over the years, I realised that this is perhaps the best time to initiate this step, with economic indicators in India being strong and an increasing larger number of people taking on the challenge of entrepreneurship. I take this opportunity to introduce my venture “YourNest” – an angel investment fund ‘in the making’ and seek your blessings and advise.
YourNest Capital Advisors Private Limited was incorporated in April 2011 and plans to launch an Angel Fund soon. In the last 5 weeks, we have met and been advised by over 20 veterans in the PE/VC circle, and many market participants such as trustees, lawyers, PR firms, auditors, tax advisors, administrators, wealth managers, outsourcing cum technology partners etc. It became immediately evident that they believe this is the right time to float an Angel fund. The Eco-System of Venture Capitalists is hungry for the super angels to build a high quality pipeline of businesses and entrepreneurs for them to invest in and build on. Indian entrepreneurs are jumping into numerous scalable businesses – many on the back of the Indian telecom networks. YourNest is all set to build on this opportunity for its customers – the high net worth individual investors.
A flood of high quality business proposals that we are receiving daily – without as yet having established a formal structure – strongly supports the need gap. The memberships at The Indus Entrepreneurs (TiE), Indian Angel Network (IAN) and the Mumbai Angels has certainly been a major reason for us to have access to these brilliant opportunities.
The first of anything gives a great sense of achievement and so has it been with us. YourNest has been able to close its first investment as a lead with Mumbai Angels in a missed call service platform – ZipDial. A visit to www.zipdial.com will show how Lead generation for your products can become much more effective. Happy to share that ZipDial has achieved its 100 million zipdials already.
Another great opportunity has come in the shape of Inventys. YourNest leads the investment in this Singapore based patented Software Company. This has been fully subscribed by the IAN. As a lead, I am happy to have first connected with the entrepreneur, completed first-cut diligence, signed term sheet, prepared investment case, and lead the subscription from over 25 investors. Inventys will improve productivity of enterprises operating with large number of application in their shared services centre, BPOs, and front offices by 30% to 80% for the repetitive activities on a desktop. The due diligence process is currently on and an all clear will result in closure of the investment in another 6 weeks with final due diligence, documentation, and structuring.
There is more. We have made passive investments in ‘Appleofmyi’ (a retail chain for kids up to 6 years in age… now going online), ‘Mobiquest’ (a mobile loyalty program), ‘Jigsee’ (a mobile video streaming client application), and ‘Hotelogix’ (a cloud based ERP for lodges and hotels). We are certainly seeing a shower of excellent opportunities.
YourNest business model of focusing on mentoring, leadership development for the entrepreneur is coming out to be the distinct need-gap. At an early stage, an entrepreneur is truly lonely at the top. He needs constant guidance and access to a wider network for business development / counselling. YourNest is preparing itself to effectively fulfill this need.
I value your inputs and look forward to your wishes, ideas, and suggestions. YourNest is in its infancy, and can make strong progress with your support. I will be happy to share our progress and update you of developments and opportunities if you so desire. I will want you to help us in building insights into your industry, seek your opinion, and help in developing the investee companies.
YourNest is operating out of Gurgaon, India.
Sunil K. Goyal