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BENGALURU: High networth individuals and UHNIs are not only turning to Indian startups to gain early access to promising ventures, but they wield a substantial financial clout to offer a lifeline to startups amid a funding winter. Over 9,000 tech HNIs and UHNIs are low risk-takers who prefer to invest in pre-seed and Series A rounds, while nearly 2,500 of them are high risk-takers participating in seed and pre-series rounds, showed a report by funding platform LetsVenture. India, it said, has 10,000 to 12,000 tech HNIs and UHNIs.
Portfolios of HNIs/UHNIs with lower risk appetite are distributed across multiple AUMs (assets under management) — corporate FDs, venture debts, investments for asset leasing and AIFs (alternate investment funds), driven by short-term gains. However, high-risk takers evaluate their investment thesis deal by deal, making smaller bets across multiple startups. About 50-55% of HNIs and UHNIs invest in startups through angel ne
The LetsVenture report showed that 70% of CXO HNI/UHNIs are driven by returns followed by their passion to mentor startups. Besides maximising returns, 75% of businessmen/ founder-CEO HNIs and UHNIs are interested in mentoring startups and contribute towards developing the startup ecosystem. About 55% of businessmen/founders prefer to stay invested for 5 years and exit a startup at a growth stage. About 60% of CXO HNIs and UHNIs prefer to stay invested for 3 to 5 years, while 70% of professionals have an investment horizon of 3-5 years. LetsVenture conducted primary interviews with over 125 HNIs and UHNIs to arrive at this data.
Family offices are investing in the startup ecosystem participating in bridge rounds in pre-Series A to pre-Series B stages. Family offices saw a significant participation in the absence of VCs deploying the dry powder that they are sitting on. The report said they’re patient capitalists compared to VCs, but the decisionmaking continues to be slower.
While health tech and fintech are evergreen sectors, investors are scouting for deals in cleantech, deeptech startups and space tech. From a limited partner (LP) sentiment, India’s startup space is expected to remain strong over the next 15 years. “From an LP perspective, the good news is a strong belief in the India story,” said Shanti Mohan, founder, and CEO of LetsVenture and trica.
Portfolios of HNIs/UHNIs with lower risk appetite are distributed across multiple AUMs (assets under management) — corporate FDs, venture debts, investments for asset leasing and AIFs (alternate investment funds), driven by short-term gains. However, high-risk takers evaluate their investment thesis deal by deal, making smaller bets across multiple startups. About 50-55% of HNIs and UHNIs invest in startups through angel ne
The LetsVenture report showed that 70% of CXO HNI/UHNIs are driven by returns followed by their passion to mentor startups. Besides maximising returns, 75% of businessmen/ founder-CEO HNIs and UHNIs are interested in mentoring startups and contribute towards developing the startup ecosystem. About 55% of businessmen/founders prefer to stay invested for 5 years and exit a startup at a growth stage. About 60% of CXO HNIs and UHNIs prefer to stay invested for 3 to 5 years, while 70% of professionals have an investment horizon of 3-5 years. LetsVenture conducted primary interviews with over 125 HNIs and UHNIs to arrive at this data.
Family offices are investing in the startup ecosystem participating in bridge rounds in pre-Series A to pre-Series B stages. Family offices saw a significant participation in the absence of VCs deploying the dry powder that they are sitting on. The report said they’re patient capitalists compared to VCs, but the decisionmaking continues to be slower.
While health tech and fintech are evergreen sectors, investors are scouting for deals in cleantech, deeptech startups and space tech. From a limited partner (LP) sentiment, India’s startup space is expected to remain strong over the next 15 years. “From an LP perspective, the good news is a strong belief in the India story,” said Shanti Mohan, founder, and CEO of LetsVenture and trica.
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