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100X.VC to set up a platform to help raise funds

Our Bureau Mumbai | Updated on November 12, 2019 Published on November 12, 2019

Venture Capital fund 100X.VC will launch a programme to enable Indian corporates to invest in about 30-40 start-ups by the first quarter of the next calendar year. The programme - Corporate Venture Vapital (CVC) Programme – will help start-ups in raising about Rs 200 crore from Indian corporates through follow-on rounds.

100X.VC, founded by entrepreneur-turned-angel investor Sanjay Mehta, intends to board corporates as investment partners. A research by the company estimates that the top 100 corporations in India have kept aside between Rs 10-100 crore of capital to invest in start-ups, the company said in a statement.

“Our role is of a catalyst by helping corporations discover, invest and build start-ups 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,” Ninad Karpe, Partner at 100X.VC, said.

The CVC programme aims to increase the sales and profits of the corporations by striking deals with start-ups that use new technologies, entering new markets, identifying acquisition targets and accessing new resources. This enables a start-up to use an investing company’s industry expertise, name and brand, and ecosystem of developed products, among others.

CVC is a form of venture capital where corporate funds are directly invested in external private companies. In 2018, CVCs invested more than $60.8 billion across 1,065 deals globally.

“Start-ups are now part of boardroom 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 start-ups,” Yagnesh Sanghrajka CFO at 100X.VC said.

ALSO READ:- Sanjay Mehta’s 100X.VC to invest in 100 start-ups

Published on November 12, 2019
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