IIT Alumni Trust-anchored IvyCap Ventures hits first close of Fund 3 at Rs 1,608 cr
The company said that given the demand, it may add Rs 500 crore more to the original target corpus of Rs 2,000 crore.
- Feb 23, 2022,
- Updated Feb 23, 2022 5:31 PM IST
Home-grown venture capital fund IvyCap Ventures has secured the first close of its third fund at Rs 1,608 crores ($214 million).
Two-thirds of Fund 3 has been raised from its existing investors while a bunch of new institutional investors including banks, insurance companies and the government departments joined the fund as Limited Partners (LPs), it said in a statement. In addition, IvyCap has also raised capital from many family offices.
The company said that given the demand, it may add Rs 500 crore more to the original target corpus of Rs 2,000 crore.
Fund 3 will continue to focus on areas like consumer tech, deep tech, healthtech, fintech, SaaS, and edtech. The fund will back 20-30 Series A start-ups with an average ticket size of Rs 30-40 crores. It will reserve around 20 per cent of the corpus for co-investing in its existing portfolio from Fund 2. The balance will be reserved as follow on for the entire portfolio.
Recent investment in portfolio companies Miko and Biryani By Kilo have been made from Fund 3.
IvyCap raised its first fund of Rs 240 crore in 2014, invested in 10 companies. It made 23 bets from Rs 535 crore second fund. Its portfolio include Clovia, BlueStone, Biryani by Kilo, Convosight, Miko, Elucidata.
With a portfolio of over 30 companies, IvyCap currently manages assets worth Rs 3,200 crores. It has already made successful exits in six companies including Purplle, Pharmarack and Leixir. It’s partial exit from Purplle last year gave the Fund 1 a 22x cash return.
Ivy Cap funds are anchored by the IIT Alumni Trust (20 per cent) while rest of the corpus is raised from Indian institutional investors, including large banks and insurance companies. Most of the deals are sourced from its strong alumni network.
The company has a 5000-member strong mentor trust, a core of which is members from IITs. It assigns two mentors to each portfolio who would work close with the start-up on strategy, coaching, capacity building, business development, and operations.
“We have proven the model of working through the alumni ecosystem of the IITs, IIMs and a few other top educational institutions of India. Our passion lies in building the endowment ecosystems in India. We had conceptualised the endowment fund model through integration with an alumni focused venture capital fund in 2011,” Vikram Gupta, Founder and Managing Partner, IvyCap Ventures Advisors Pvt Ltd, said.
On every Series A bet it makes, the company takes 1 per cent stake for the mentor trust and 1 per cent for the specific mentors assigned to these companies, over and above its stake. According to the company, so far 70 per cent of the mentor trust payout has been given back by mentors for endowment to their alma maters.
The company said it has integrated the SDG/ESG (Sustainable Development Goals/ Environmental, Social, and Governance) approach in its investing philosophy for Fund 3. Every company that it invests in will map its objectives with at least one of the 17 goals of the United National SDG framework. The Fund will track its portfolio companies on the objective metric of 169 targets behind these goals using a detailed GRI (Global Reporting Initiative) metric, it said. It recently acquired SDG consulting firm Fandoro to better implement the SDG goals.
Home-grown venture capital fund IvyCap Ventures has secured the first close of its third fund at Rs 1,608 crores ($214 million).
Two-thirds of Fund 3 has been raised from its existing investors while a bunch of new institutional investors including banks, insurance companies and the government departments joined the fund as Limited Partners (LPs), it said in a statement. In addition, IvyCap has also raised capital from many family offices.
The company said that given the demand, it may add Rs 500 crore more to the original target corpus of Rs 2,000 crore.
Fund 3 will continue to focus on areas like consumer tech, deep tech, healthtech, fintech, SaaS, and edtech. The fund will back 20-30 Series A start-ups with an average ticket size of Rs 30-40 crores. It will reserve around 20 per cent of the corpus for co-investing in its existing portfolio from Fund 2. The balance will be reserved as follow on for the entire portfolio.
Recent investment in portfolio companies Miko and Biryani By Kilo have been made from Fund 3.
IvyCap raised its first fund of Rs 240 crore in 2014, invested in 10 companies. It made 23 bets from Rs 535 crore second fund. Its portfolio include Clovia, BlueStone, Biryani by Kilo, Convosight, Miko, Elucidata.
With a portfolio of over 30 companies, IvyCap currently manages assets worth Rs 3,200 crores. It has already made successful exits in six companies including Purplle, Pharmarack and Leixir. It’s partial exit from Purplle last year gave the Fund 1 a 22x cash return.
Ivy Cap funds are anchored by the IIT Alumni Trust (20 per cent) while rest of the corpus is raised from Indian institutional investors, including large banks and insurance companies. Most of the deals are sourced from its strong alumni network.
The company has a 5000-member strong mentor trust, a core of which is members from IITs. It assigns two mentors to each portfolio who would work close with the start-up on strategy, coaching, capacity building, business development, and operations.
“We have proven the model of working through the alumni ecosystem of the IITs, IIMs and a few other top educational institutions of India. Our passion lies in building the endowment ecosystems in India. We had conceptualised the endowment fund model through integration with an alumni focused venture capital fund in 2011,” Vikram Gupta, Founder and Managing Partner, IvyCap Ventures Advisors Pvt Ltd, said.
On every Series A bet it makes, the company takes 1 per cent stake for the mentor trust and 1 per cent for the specific mentors assigned to these companies, over and above its stake. According to the company, so far 70 per cent of the mentor trust payout has been given back by mentors for endowment to their alma maters.
The company said it has integrated the SDG/ESG (Sustainable Development Goals/ Environmental, Social, and Governance) approach in its investing philosophy for Fund 3. Every company that it invests in will map its objectives with at least one of the 17 goals of the United National SDG framework. The Fund will track its portfolio companies on the objective metric of 169 targets behind these goals using a detailed GRI (Global Reporting Initiative) metric, it said. It recently acquired SDG consulting firm Fandoro to better implement the SDG goals.