![]() “We are also stage agnostic so can come in at Seed, Series A, B or C and look to continue to back our investments over stages, consistent with the concentrated portfolio strategy. One investor remarked that Bessemer is taking months and months in due diligence and maintaining a high level of skepticism.Īnant Vidur Puri, a partner at Bessemer Venture Partner, confirmed the firm has only done one net new investment in India this year, saying the fund is “roadmap focused” that looks to build a concentrated portfolio of high-quality investments and often likes to double down on existing backings. Gaming startup Loco has also held talks with investors to raise about $80 million, but more than six months later no deal has materialized.īessemer Venture Partners’ India team has inked just one new net deal this year, according to people familiar with the matter. India’s sovereign fund has been evaluating an investment in agritech startup Wa圜ool for more than six months at this point, according to two people familiar with the matter. Firms are scrutinizing deals at Series A and B stages for up to six months now, said an investment banker, when such deals once took far less diligence. The glut of capital has led India investors to turn abnormally cautious and choosy, founders and investors said. This strategy of pursuing high-risk, high-reward deals is especially common among early-stage investors who allocate most of their fund capital into young startups in hopes of getting in early on the next big thing. These firms aim to have two-three of their portfolio companies drive the majority of a fund’s capital gains. VC firms generally make between 20 to 30 investments per fund, betting on a select few startups that can potentially generate outsized returns to compensate for other losses. (A VC with a recently raised fund below $250 million asserted that investment firms wielding $500 million or more in capital reserves face greater difficulty deploying those assets profitably.) Investors are increasingly cautioning that they are struggling to spot fund-returning opportunities - their latest headache in the world’s most populous nation. However, the prevailing mood has shifted this year. Several leading India investors, including Peak XV Partners, Elevation Capital, Lightspeed, Nexus and Accel, have raised $500 million-plus in the past two years, emboldened by earlier home runs and vast market potential. High-flying venture investors in India managing hundreds of millions of dollars are tempering expectations, making early-stage startup bets that in best-case scenarios they hope will return 3-5x invested capital.
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