India’s venture capital industry has evolved considerably over the past decade. While securing funding and achieving rapid user growth were significant early on, there is now a greater focus on cash exits as a key measure of success and a driver for the ecosystem. This shift indicates a maturing market where sustainable business models and strategic acquisitions are increasingly valued.
Our latest article, Debunking Myths, Building Exits takes a look at five common perceptions within the early-stage technology startup ecosystem in the country, drawing on insights from our experience across 10 exits in the last five years at a weighted average of 29.2% IRR.
Discover five mythbusters in this article:
How DeepTech investments do not necessarily always involve very long waiting periods for returns, with our exits occurring at an average of under five years.
Examples of premium valuations achieved at exit, including impressive multiples on revenue that indicate growing global confidence in Indian tech solutions.
Significant tangible value is commanded by intangible assets , such as intellectual property and proprietary technologies. Our experience shows that these can be highly valued, as seen with SmartQ, which was acquired for its technology by UK’s Compass Group, among several other examples.
How D2C brands have strategically acquired technology platforms: MamaEarth acquiring Momspresso or BoAt seeking CoveIoT's technology.
Why having a clear path towards future upside is key for later-stage investors, enabling us to pass the baton to larger VCs through secondary sales.
We share insights from our Nurture Capital approach, highlighting how we work closely with portfolio companies from their early stages to help them build businesses that have strong strategic appeal for potential acquirers. Our experience includes a consistent track record of delivering exits.
If you are interested in exploring these insights into the realities of early-stage tech exits in India and understanding more about how we nurture success, we invite you to read the full article.
