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Venture capital firm Ivy-Cap raises Rs 245 crore for maiden fund

IvyCap has already started soft marketing its second fund, which will raise around Rs900 crore including from overseas investors.

, ET Bureau|
Sep 23, 2014, 04.00 AM IST
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IvyCap has already started soft marketing its second fund, which will raise around Rs900 crore including from overseas investors.
IvyCap has already started soft marketing its second fund, which will raise around Rs900 crore including from overseas investors.
MUMBAI: Venture capital firm Ivy-Cap Ventures has raised Rs244.5 crore for its maiden fund that targets early-to-growth stage startups founded by graduates of select top colleges like IITs and IIMs.

The fund has completely been raised from domestic investors, with 20% anchor commitment coming from the alumni of IITs and IIMs globally, and the rest from institutional investors.

Vikram Gupta, founder and managing partner of IvyCap, said its strategy of backing companies founded or referred to by alumni of top colleges has clicked with investors in funds, or limited partners (LPs).

“If you just look at the data of the total IITians about 300,000, 20% of them have been entrepreneurs once in their lifetime, and 500 IPOs have already happened,” said Gupta. “One-third of the companies which have gone through venture-backed exits have been founded from IITs and IIMs.”

IvyCap has already started soft marketing its second fund, which will raise around Rs900 crore including from overseas investors.

“In the last 2-3 years, fundraising has not been easy. But we are now getting calls from investors who want to invest in the fund, who we will accommodate in the next fund,” said Gupta. IvyCap Ventures has already closed six investments, including agri information services firm RML Pvt Ltd and women-focused online apparel retailer E-Shakti.

“We have already deployed 50% of the fund and expect to finish investments in the next eight months, across probably five more deals, said Gupta, who himself is an IIT Delhi graduate. The fund’s advisory board include HCL Technologies co-founder Arjun Malhotra, Mastek co-founder Ashank Desai and Makemytrip founder Deep Kalra besides deans and professors of IITs.

IvyCap Ventures also counts GK Pillai, former union home & commerce secretary, as chairman of the fund.

“We have a strong mentoring programme wherein highly qualified, experienced professionals coming from diverse industries actively work with the investee companies in strategy, business development and operations,” said Pillai.

Other venture capital investors say a significant portion of their own portfolio company founders belong to IITs and IIMs although they don’t have a blanket rule round it. “There are a lot of benefits of picking alumni from top colleges due to their network and ability in terms of opening doors, hiring and fundraising,” said Karthik Reddy, co-founder of Blume Ventures.

“While they do start with a distinct advantage, the end outcome is not always guaranteed.”

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