5 top Early Stage Investment Companies for Startups

Last year has been a great year for venture capital funding value in India. The report from GlobalData mentions that India witnessed a massive 39 per cent year-on-year growth in venture capital funding deal volume to 976 deals during the first half of 2022. But, towards the end of the last year Investments were running short, and startups were scrambling to maintain cash flow. However, amid the funding winter and recession scenario, early-stage startup investment has gained much traction. For one, the return on early-stage investments is relatively higher while being a safe and better choice for investors. In case you are looking to raise funds for your startups at an early stage, here are the top 5 early stage investors in India who invest, guide and have a vision to identify a unicorn at an early stage.

Mumbai Angels
Mumbai Angels is India’s premier platform for private investment that is now a part of 360 ONE (earlier known as IIFL Wealth & Asset Management), one of the leading wealth and alternates-focused asset firms in India, holds an AUM of USD 130 Mn and a 200+ strong portfolio spanning a wide range of sectors, such as Technology, Consumer, Life Sciences, DefenseTech, SpaceTech, EV, AgriTech, FinTech, EdTech, Gaming, and Content, etc. Of the overall portfolio, the platform has exited/secured the next round of funding for 100+ of them. The platform has 750+ investors spread across 70+ Global and Indian cities. Having a unique take on things, the forward-looking platform believes that the market hasn’t matured fully to classify other players in the industry as competitors and refers to them as peers. Mumbai Angels also looks to become a launchpad for first-time VCs and gain a strong foothold in wealth management discussions and build the startup investment asset class further. After all, it is a craft that needs to be learned, honed, and mastered over time.

Blume Ventures
Founded in 2010 by Karthik Reddy and Sanjay Nath, Mumbai-based Blume Ventures is an early-stage VC firm that funds startups that are solving hard problems. Blume Ventures partners help founders to achieve product-market fit and power past the first point of scale. The startup seeks to invest in financial services, information technology, manufacturing, blockchain, cybersecurity, ecommerce, b2b payment, gaming, TMT, mobile commerce, cannabis, business services, business products, consumer services, and technology-based sectors in India. They invest in startups with a strong tech spine, such as businesses backed by intellectual property or code. It has a special learning for B2B businesses and ventures that are capital light. Some of the startups they have invested in are Cashify, Unacademy, Exotel, LBB Purplle, Locus, among others. They invest for the long run, staying invested for anywhere from eight to 10 years, and as long as the founders are equally invested in the ambition of the business.

Aavishkaar Venture Capital
Aavishkaar Venture Capital Founded in 2001 by Vineet Rai, Mumbai-based Aavishkaar Venture Capital provides micro-equity funding and operational and strategic support, and is also known for its impact investing thesis, which can create significant value for both investors and society. It follows a multi-stage ‘sow-and-reap’ investment strategy that supports businesses across the growth spectrum, from seed to scale stage, while building a portfolio with a balanced risk return profile. The venture capital firms focus on sectors including agritech, agriculture, financial inclusion, and essential services such as education, logistics, and healthcare. It has invested in portfolios such as AgroStar, Milk Mantra, Chqbook, Soulfull, and PayWell, among others.

YourNest Venture Capital
YourNest Venture Capital, based in Gurugram, is an early-stage fund focused on deep-tech domains such as IoT, AI, Robotics, Digital Products, Edge Cloud, AR/MR/VE, Dev. Tools, and enterprise segments. It provides a safe startup ecosystem where early-stage startups are nurtured and provided the required skills to scale-up and grow. The firm aims to create an opportunity for Indian founders to scale into global markets with IP-led innovation. They also support founders with ‘Nurture Capital’ with an established network of professionals, advisors, mentors, innovators, and business leaders, and also offer an enabling eco-system for any startup whose business is validated by customers.

3One4
Founded in 2016 by Pranav Pai and Siddarth Pai, Bengaluru-based 3one4 Capital is an early-stage venture capital fund. The company invests in startups in health, education, fintech, etc. Apart from investing in the new-age technologically driven businesses, the company also assists founders in resolving their core company issues. It helps other startups by identifying opportunities for growth, reducing the risk, and increasing the reward outcomes. Furthermore, its deep involvement strategy fund works with founding teams and subject-matter experts to prioritise and strategies for product-market fit, and optimise for defensibility and growth in revenue and impact.