Capital raising? Watch out for new foreign start-up funds that are expanding in India

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The new funds not only seek to support scalable ideas in India, but also seek the transfer of technology from India to their respective ecosystems.

More than four start-up funds from countries such as Brazil, the United Arab Emirates, Singapore and Canada are looking to support start-up Indian start-ups over the next three months to take advantage of innovative ideas emerging from the third largest ecosystem. young companies in the world, India.

"Gilda VC of the United Arab Emirates, F3 Capital of Brazil, the Toronto Business Development Center (incubator) and Govin Capital of Singapore are the financial institutions that either want to start their business in India or grow in India in the next three to six years. month. Other companies in the US and China Baia region are also exploring investments in India, "said Financial Express Online, senior director and director of Nassom – 10,000 startups, Suresh Jayaraju. Jayaraju, former senior executive of Google, Airtel and Samsung, in charge of new products and innovation, has been the mentor of many startups and consults various funds seeking to establish or grow in India.

"On Gilda VC, which has begun meeting with start-up companies for investments, and Govin Capital, which is looking to expand its business, F3 Capital and the Toronto Business Development Center currently understand what their investment thesis should be for India, how compliance procedures, etc. Jayaraju said.

The new funds not only seek to support scalable ideas in India, but also seek the transfer of technology from India to their respective ecosystems. For example, F3 Capital is looking for ideas on the mobile payments segment that is also suitable for Brazil, which is also a prepaid card market like India.

"The adoption of technology in Brazil comes largely from North America, although the market dynamics offered to them are not very similar to those in this region. They would therefore prefer to choose technologies and ideas in India. F3 Capital said the relevant technologies here can be imported or approved in Brazil, "added Jayaraju.

Similarly, Jayaraju said the Toronto Business Development Center also wanted to install Indian startups in Canada, while the center was looking to attract more Canadian angel and venture capital (VC) investors to support Indian startups. . On the other hand, Gilda VC seeks to invest more than 100 million rupees in special offers.

These funds are considering investments up to Series A, unlike more established capitalization companies that support advanced startups, which can unlock more capital at an advanced stage.

Seed funding increased from $ 191 million in 2017 to $ 151 million in 2018, while funding increased by 250% from $ 847 million in 2017 to $ 3 billion in 2018, according to a report from Nasscom 2018 – Ecosystem of Indian Startups – Approaching Exit Speed.

"If investments are not made at an early stage, how to create a pipeline for Series A? This is a big problem for VCs. However, (foreign) funds like these will fill this gap, "Jayaraju said.

The new funds are aimed at start-ups in the fintech, health and reeptech sectors.

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