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Pulkit Sharma || The CEO Magazine
100X.VC, a venture capital firm recently announced the launch of a new programme which is called corporate venture capital (CVC). In this programme, they will onboard various Indian corporate as their investment partners.
On 12th November, 100X.VC revelled that the top companies of India always have around INR 10 to 100 Cr. of capital with them so they can invest in start-ups.
A partner at 100X.VC, Ninad Karpe said that:
"Indian corporations woke up after the Walmart acquisition of Flipkart. It shook all of them to start looking at startups seriously. Through this programme, we will be helping corporations discover, invest and build startups allied to their industry and strategic fitment. Initially, we will plan to work with 10-12 company boards to actively create a bespoke deal flow for their investments."
Opportunities for Investors
With the introduction of this new programme, CVC partners also known as investors can now leverage the start-ups funded by 100X.VC as their deal flows to the next investment round. 100X.VC stated that they have built a platform for corporate who are looking for potential start-ups to boost their investment strategy.
This CVC programme also allows emerging start-ups to use the investing company's prestigious brand, good networking connections, industry expertise and ecosystem of developed products. Investing in companies is always an opportunity to increase revenue for CVCs as they can enter new markets, acquisition targets, strike the right deals, harness new technology and access new resources.
With this, they also believe that this relation can lead to more profitable partnerships between CVC and its parent company which will increase the value of the start-ups. All this will drive the CVC ecosystem to expand like Google and Reliance in India.
Initiation of 100X.VC
Sanjay Mehta and Ninad Karpe started 100X.VC in Mumbai in July 2019 as they are already invested in more than 130 start-ups in different industry in an individual capacity. The fund includes various prominent names like Yagnesh Sanghrajka, Shashank Randev and Vatsal Kanakiya. 100X.VC announced that they are going to invest in 100 start-ups every year and support those start-ups by offering them expertise and resources to build and scale their business.
Surprisingly, 100X.VC is the first and only VC firm that is investing in 100 start-ups every year by using iSAFE notes. Full form of iSAFE is India Simple Agreement for Future Equity. In this investors can invest in cash to purchase the shares of their choosing start-up company. The legal 'note' will allow start-ups and investors to close the deal quickly without any legal complications in the agreements.
Since their foundation, they have received almost 1200 pitches from seed-stage start-ups and 100X.VC is going to choose 100 start-ups to invest in. They will reveal the first batch of portfolio companies at their VC Pitch Day which will be on 7th December 2019.
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