IvyCap Ventures

IvyCap Ventures receives government nod to invest $36 million in Indian startups

In Deal Flow by Jayadevan P K

IvyCap VenturesEarly to growth stage venture capital firm IvyCap Ventures has received government approval to invest $36 million in Indian startups. The foreign investment proposal was approved by the government’s foreign investment promotion board earlier this month and announced on Monday.

The fund, was floated Vikram Gupta, who was the chief executive officer of IndiaVenture Advisors Private Limited, a Private Equity Fund Management company backed by the Ajay Piramal Group.

The fund made its first close of $19 million sometime in July and said that it was in talks to invest $4.5 million each in two Indian companies. IvyCap Ventures had roped in former Home Secretary G K Pillai as its Chairman in August 2011 and had received market regulator SEBI’s approval earlier.

The venture firm clearly has a bias towards startups founded by graduates from top tier Indian colleges. Its investment thesis says: Research shows companies started and run by promoters from leading institutions of the country have been 5-7 times more successful than otherwise.

It will focus on healthcare and life sciences, education, infrastrubure, technology and other sectors such as clean tech and manufacturing. The firm has plans to invest anywhere between $300,000 to $7 million in about five companies a year.