Entrepreneur-turned-angel investor Sanjay Mehta has announced a plan to scale India’s startup ecosystem. After investing in more than 130 startups, he has set up 100X.VC, a new venture capital firm that aims to invest in 100 early-stage startups in one year.
100X.VC, which wants to be the first institutional investor in its portfolio companies, will use iSAFE - India SAFE Note . The alternative to a convertible security note is customised for India, and will avoid tedious documentation, cut timelines significantly, and benefit startups.
The sector-agnostic fund will focus its investments in companies across a broad range of industries, picking startups with disruptive business models, high growth, and scale. The investment size for each early-stage startup would range from $30,000 to $140,000. The fund size has not been disclosed, but sources pegged it at $5 million.
Ninad Karpe, Partner at 100X.VC, said: “100X.VC is truly a game-changer. I am delighted to be part of this exciting journey of funding startups in India using a unique model. I hope to [use] my entire corporate experience to nurture and grow the startups we invest in.”
Based in Mumbai, 100X.VC has received the final regulatory approvals for Category 1 - Alternate Investment Fund Licence and Investment Advisor Licence from the Securities and Exchange Board of India (SEBI) to commence operations.
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Going beyond funding
To comply with Indian laws, iSAFE Note takes the “legal form of compulsorily convertible preference shares (CCPS), which is convertible on occurrence of specified events”. The instrument helps startup founders do away with “the need to state pre- or post-money valuation and long agreements”.
100X.VC aims to go beyond mere funding. It will open its network, expertise, and resources to help founders craft a scalable business model. Essentially, it will guide startups from PoC to market stage.
Sanjay Mehta, Founder and Partner at 100X.VC, said: “The time has come for us in India to make a huge leap in investing in startups, using globally successful models that will lend depth and scale to the VC industry. When startups become part of the 100X.VC ecosystem, they will get all that they truly need. For us, investing in 100 startups over the next 12 months is just the beginning.”
(Edited by Teja Lele Desai)
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