Utthista, a venture capital fund that puts in early stage investments in start-ups, is looking at investing 40 ventures in the second year of its operations.

The Hyderabad-based fund claims it is not a typical VC that grills the first generation entrepreneurs with difficult questions.

“We don’t even ask for business plans. We will bet on them at the idea level. We have just started calling for applications for the second tranche of the investment programme,” Mohsin Khan, General Partner of Utthista Management Advisors, told Business Line .

Unlike other funding firms, batch of 10-15 entrepreneurs are picked and put them through a three-week programme where they would be exposed the intricacies of building an enterprise.

“This would include classes on how to maintain accounts,” he said.

In the CMA100 (Customer and Market Analysis for 100 hours), the team would work under professional mentors to understand the nuisances of doing business.

“We invite applications through the Web and pick the ideas after due diligence. Our package includes, seed funding, office space, legal and accounting advice. On the demo day, we will give them an opportunity to present their case to bigger investors such as VCs, Angel Investors and high net worth individuals,” he said.

With a SEBI (Securities and Exchange Board of India) approved fund size of Rs 50 crore, the fund is backed by the promoters of Nuziveedu Seeds.

In the first year, it has invested Rs 10 lakh each in four firms in healthcare, travel and learning firms.

The VC firm picks 10-15 per cent equity in lieu of the investments it makes.

kurmanath.kanchi@thehindu.co.in

Related Topics
comment COMMENT NOW