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INDIA

ACCELERATOR-Mini
Turning ideas into assets

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What does data say?
The
Opportunity Extensive analysis of over 550,000 investment events and outcomes shows that despite high failure rates,
valuations in the first four rounds consistently favor the investor compared to later investor rounds

NAV + Cash Return by Funding Round • Chart shows results derived from
550,000 VC events (investments,
20th to 80th Percentile
Average Multiple on Invested Capital

Median VC Multiple acquisitions, etc) sourced from


Median NASDAQ Return (~9% IRR) PitchBook, Crunchbase, Red Seer,
Venture Intelligence, Hatcher+ co-
Early rounds are the most profitable investment partners and Hatcher+
proprietary data
• Round assignments follow
as per named by data source
• Where investments have not yet been
realized or written off, an adjusted
NAV* based on last funds raised is used
• Returns illustrated are gross and do
Seed
Angel/Pre-Seed
Accelerator

Series B

Series C

Series E & Above


Series A

Series D
not take into account any fees / carry
that may be charged

* NAV is either NAV last reported (where data is recent), or where no recent data is available, we use a downward adjusted NAV based on a set of prescribed formulas to factorindownsiderisktovaluationdecayif
there is norecent financing activity. For information purposes only. This presentation includes forward looking statements: Such statements should not be construed as a commitment to future performance.

Confidential - Do not duplicate or distribute without written permission from IA.


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INDIA ACCELERATOR
Vision

The leading seed accelerator in the country, attracting


technology Start-ups
Mission

Create $250Mn combined valuation of IA startups by end of 2021

Phase 1: Focus on Delhi NCR, go operationally deep instead of wide Phase 2: Geographic & vertical expansion. Go to Tier 2 cities to tap into 40% of
Startups.

Levers Values
o Create a powerful community effect 1. Diversity of People and Ideas

o Leverage the Technology and Consulting arms 2. Collaboration & interactions over individuals & closed door

o Credible mentor network 3. Global connect & perspective

o Exceptional 4-month Hands-on program to de-risk 4. Supporting entrepreneurs over making money

and grow the startup 5. Learning & sharing over siloed approach
Confidential - Do not duplicate or distribute without written permission from IA.
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E
A few stand-out performances

8.7X 3X 2.9X 10.3X


Backed by Angel Investors Backed by Alfa Ventures Backed by Angel Investors Backed by Angel Investors

20.8X 17X 17.4X 11.5X


Backed by IPV Backed by Artha Ventures Backed by IIT-Kanpur Backed by VCATs

11.4X 20X 14.8X 25.7X


Backed by multiple funds Backed by IAN Backed by Angel Investors Backed by VC

Confidential - Do not duplicate or distribute without written permission from IA.


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IA – Mini: SPV for Early Stage Startups
Cohort 10 Startups Duration Two year
Equity 0.5-1.5% of every High-Pot Startup Modes Two - FO & FP
Investment 5 lacs Carry Zero for Full Ownership
Investors 10 50% for Full Protection
Total Pool 50 lacs Set-up cost One-time 10K each

Option 1 (Full Ownership) Option 2 (Full Protection)


Scenario 1: SPV is at loss

Maximum possible loss could be Zero loss for SPV holders as IA will reimburse the shortfall in invested
entire invested capital. Capital i.e. downside is completely protected.
Scenario 2 : The SPV is at no profit or no loss

No loss for the holders except the No Capital loss for the holders except the opportunity cost.
opportunity cost.
Scenario 3 : The SPV has made profits

Total amount available for distribution at the end of the SPV term is
Entire profit belongs to the investor
distributed among SPV holders as per their share. Carry of 50% shall be
as per their share of the SPV.
given to IA from the profits.
Confidential - Do not duplicate or distribute without written permission from IA.
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IA-Mini: Key features

Access to higher-quality startups

Twin principle – Go wide and High-quality filter

Completely safe. Capital-back guarantee

Full-diversification play; portfolio-theory at its best

Low ticket investment, Higher IRR.

Come in early when the valuation is lowest. Early-In, Early-out

Thorough Due Diligence - Legal, Operational, Financial etc. Selected startups undergo 4-month cohort
The average return for a seed investor after 3.5 years is 2.6x in the US according to an analysis done by NESTA.

Confidential - Do not duplicate or distribute without written permission from IA.


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