
3ONE4 CAPITAL: Creating a new value through Innovation


The Maturing of VC market
As the startup ecosystem scales and the company see more success, it can also expect more operational expertise to enter the VC domain. As more VCs build an exit track record, they will be more confidence in this sub asset class and capital should be more readily available for Indian VC funds that are raising new funds. This is the mark of a maturing ecosystem ¬ the feedback loops that is created between the operators and the investors. This will be the evolution of the Indian VC ecosystem as well. As we enter the 2020s, 3ONE4 CAPITAL believe there will be more Indian Rupee capital entering VC in India as well. With the SIDBI fund is setting an example of government-led initiative, more Indian PSUs and Corporates will allocate capital to this sub asset class. Corporate VCs and balance-sheet investment strategies will take larger positions and acquire Indian companies Reliance Jio, Times Group, and Tech Mahindra are good examples. Finally, there will be a rise of India-first funds Indian fund managers raising a bulk of their funds with Indian investors to capture the Indian market. Bangalore, Delhi, and Mumbai are already the three most active centers of startup creation and funding, with Bangalore a clear leader. The company should see more distribution in the next set of cities such as Hyderabad, Pune, and Chennai, as well as acceleration in other states as well. India now sees between $11Bn to $14Bn of VC funding entering startups every year. With more Indian Rupee participation, we may expect the annual volumes to hit $15-$18Bn over the next 5-7 years.
Investment Portfolio
3one4 Capital manages $110M across the early stage in India. The firm works in select market categories and in the intersection of adjacencies that are large, growing, and ready for unique products and services. The fund's focus areas include machine-driven actionable intelligence services for the enterprise, enterprise automation, ambient intelligence technologies, consumer products, fintech, media and multi-lingual content generation, and health. 3one4's investments include Licious, Betterplace, Open, DarwinBox, Faircent, Bugworks, YourStoryPocket Aces, and Tracxn. Over the course of working with more than 50 start-ups, one of our most valuable learnings has been the process of building a bridge of trust and confidence with the founding teams.
As the startup ecosystem scales and the company see more success, it can also expect more operational expertise to enter the VC domain. As more VCs build an exit track record, they will be more confidence in this sub asset class and capital should be more readily available for Indian VC funds that are raising new funds. This is the mark of a maturing ecosystem ¬ the feedback loops that is created between the operators and the investors. This will be the evolution of the Indian VC ecosystem as well. As we enter the 2020s, 3ONE4 CAPITAL believe there will be more Indian Rupee capital entering VC in India as well. With the SIDBI fund is setting an example of government-led initiative, more Indian PSUs and Corporates will allocate capital to this sub asset class. Corporate VCs and balance-sheet investment strategies will take larger positions and acquire Indian companies Reliance Jio, Times Group, and Tech Mahindra are good examples. Finally, there will be a rise of India-first funds Indian fund managers raising a bulk of their funds with Indian investors to capture the Indian market. Bangalore, Delhi, and Mumbai are already the three most active centers of startup creation and funding, with Bangalore a clear leader. The company should see more distribution in the next set of cities such as Hyderabad, Pune, and Chennai, as well as acceleration in other states as well. India now sees between $11Bn to $14Bn of VC funding entering startups every year. With more Indian Rupee participation, we may expect the annual volumes to hit $15-$18Bn over the next 5-7 years.
Investment Portfolio
3one4 Capital manages $110M across the early stage in India. The firm works in select market categories and in the intersection of adjacencies that are large, growing, and ready for unique products and services. The fund's focus areas include machine-driven actionable intelligence services for the enterprise, enterprise automation, ambient intelligence technologies, consumer products, fintech, media and multi-lingual content generation, and health. 3one4's investments include Licious, Betterplace, Open, DarwinBox, Faircent, Bugworks, YourStoryPocket Aces, and Tracxn. Over the course of working with more than 50 start-ups, one of our most valuable learnings has been the process of building a bridge of trust and confidence with the founding teams.