New Delhi, Aug 4 : The 9Unicorns Fund, launched by integrated incubator and accelerator platform Venture Catalysts recently, has a dedicated fund allocation of Rs 300 crore to invest in more than 100 companies every year.
The fund would be invested with a standard deal of Rs 60 lakh for 5 per cent equity along with a further scope to invest Rs 3-5 crore more during subsequent funding rounds for start-ups that show sustained promise over a period of time.
The 9Unicorns fund was launched recently by India's first accelerator Venture Catalyst to identify the best ideas and early stage start-ups from India.
The 9Unicorns fund will identify high potential early stage businesses across sectors including but not limited to domains such as Electric Vehicles, mobility, Augmented Reality VR, AI and ML, fintech, retail & FMCG startups.
Considering a significant number of start-ups die within the first few years because they are unable to raise the right funding rounds at the right time, 9Unicorns Fund has put in place a unique de-risking strategy. The start-ups will have VCats as a facilitator, with an access to the firm’s extensive network for its seed funding. This will ensure a runway of up to 18 months for the start-up, post which it will be able to secure larger funds for Series A+ rounds from growth stage investors.
This protective cushioning at an early stage makes the Fund an extremely attractive proposition for businesses, and its strategy to lower the risk of sustenance for start-ups considerably distinguishes its value proposition.(UNI)