100X.VC, India’s only venture capital fund to invest in 100 startups in a year using iSAFE notes, has announced a formal corporate venture capital (CVC) program. Under this program, 100X.VC will on board Indian corporates as investment partners.
Under this program, CVC partners can now leverage 100X.VC funded startup companies as their deal flow for the next round of investments. 100X.VC’s strategically driven CVC program primarily aims to directly or indirectly increase the sales and profits of the corporations by striking deals with startups that use new technologies, entering new markets, identifying acquisition targets, and accessing new resources, while financially driven CVCs can invest in new companies for leverage.
Over the last decade, corporate venture capital (CVC) globally has been growing at an unprecedented rate. In 2018 alone, over $60.8 billion was invested in more than 1,065 deals, representing an increase of more than 100% from the previous year which is equivalent to 23% of all venture deals. Corporate venture capital is a form of venture capital where corporate funds are directly invested in external private companies. Unlike Venture Capital, Corporate Venture Capital strives to achieve goals both strategically and financially.
Ninad Karpe, Partner at 100X.VC says “Indian corporations woke up after Walmart acquisition of Flipkart. It shook them to start looking at startups seriously. Our role is of a catalyst by helping corporations discover, invest and build startups allied to their industry and strategic fitment. We initially plan to work with 10-12 Company boards to actively create a bespoke deal flow for their investments. Given my past background as CEO of listed company, I understand the boards push for innovation and nonlinear growth. I closely work with CEOs of large corporations and help them hedge & build with startups”.
Yagnesh Sanghrajka CFO at 100X.VC says “Startups are now part of board room discussions. Companies don’t want to be left out on innovation and new age commerce. While corporations know their own industry, they have very little knowledge on how to access or work with young startups. With huge interest from corporations, we worked to formalize a structured CVC program.”
100X.VC is India’s first Fund to invest in early stage startups using iSAFE – India SAFE Notes. The fund is sponsored by Mehta Ventures, the Family Office Investment arm of Sanjay Mehta, to nurture innovative ideas that add value and bring solutions to a problem. 100X.VC values its relationships with founders, co-investors, corporations and investment bankers and effectively becomes the coach, strategy consultant, investment banker, business mentor and trusted advisor of the startup after investing.