Inflection Point Ventures invests in 5 start-ups during Covid-19 lockdown

Sangeetha Chengappa Bengaluru | Updated on May 13, 2020

Vinay Bansal, CEO, IPV

Angel-investing platform to invest ₹10-12 crore in six more companies

At a time when the general sentiment among angel investors remains “fearful” as a consequence of the coronavirus pandemic, Inflection Point Ventures has made angel investments in five start-ups during the lockdown, with six more in the pipeline.

“We have invested ₹20 crore in five start-ups — Milkbasket (online grocery), Toch (mediatech), Phable (healthtech), Pedagogy (edtech) and FabBox (F&B) — during the past 45 days of the lockdown, and will be investing ₹10-12 crore in six start-ups in the next two weeks. We provide both monetary and non-monetary support to the start-ups, as well as complete transparency and risk management for our investors,” Vinay Bansal, co-founder and CEO, Inflection Point Ventures (IPV) , told BusinessLine.

He said IPV follows a stringent five-stage evaluation process before investing in a start-up. “It is a commonly known fact that 95 per cent of start-ups fail. We studied the reasons for failure, and have come up with a foolproof methodology for selecting start-ups to invest in. I am proud to say that not a single start-up in our portfolio of 35 start-ups has fallen flat on its face in the last 18 months.”

IPV is a sector-agnostic, digital-first angel-investing platform that connects a network of over 1,600 investors including leading angels, CXOs (chief experience officers), HNIs (high networth individuals), family offices and working professionals with a curated set of start-ups. Co-founded 18 months ago by Bansal, Ankur Mittal and Mitesh Shah with the vision to democratise angel investing, IPV has over 150 first-time angels on its platform, from 21 different sectors, with the average investment per investor at ₹10 lakh.

Investing smart

Pointing out that the general sentiment for angel investments in 2020 will continue to remain fearful, Bansal said: “Smart investors who are not guided by fear or greed will be able to make good investments in some very good start-ups. While other investors have slowed down on funding start-ups, we have aggressively invested in start-ups in March/April/May and will continue to do so as we seize the opportunity to fund good start-ups with great founders and teams. Flipkart invested in great talent at reasonable CTCs during the 2008-2009 recession and went on to build a highly valued company that got acquired by Walmart.”

IPV has invested a total of ₹95 crore in 35 start-ups, at an average investment of ₹75 lakh-1.4 crore per start-up, in the last 18 months, and has added 400 investors to its network in the last 30 days.

Asked what has attracted the investors to the platform, Bansal said: “Real estate as an asset class has not grown in the last 7-8 years; the stock market hasn’t delivered in the last five years. People want to invest in an asset class that promises good returns, and are turning to start-ups as they have seen, first hand, the wealth creation in private markets for investors by start-ups like Flipkart, Ola and Swiggy, to name a few.”

Published on May 13, 2020

Follow us on Telegram, Facebook, Twitter, Instagram, YouTube and Linkedin. You can also download our Android App or IOS App.

This article is closed for comments.
Please Email the Editor