Trillion Dollar Ventures (TDV), a micro-business focused on early stages venture capital The firm, has launched its second fund with a total corpus of Rs 50 crore.
The new fund, which targets early and early-stage startups, represents a doubling of its initial fund size.
TDV, founded in 2021 by Ujwal Sutaria, aims to foster technology-driven companies and invest in innovative founders.
Investment strategy and target sectors.
The newly launched fund will invest between Rs 1-2 crore per startup, mainly supporting companies with platform-based models, marketplaces and exchange businesses. The fund focuses on supporting startups within the consumer technology (B2C) sectors, such as fintech, gaming, spiritual technology, creator economy, social media and consumer upgrades.
TDV’s investment strategy places a strong emphasis on serial entrepreneurs and founders with deep experience in the field, preferring high-tech, low-operation businesses that demonstrate growth potential.
Global Partner Commitments
TDV has already garnered substantial interest and commitments from limited partners (LPs) in several countries including India, US, UK, UAE and Singapore. These LPs include prominent unicorn founders, family offices, and CXOs from various industries.
“We want to back startups with trillion-dollar outcome potential, as our name reflects our genesis of backing startups. We believe in making non-consensus bets, which is where a fund generates alpha,” said Ujwal Sutaria, Founder and General Partner at TDV.
Subscribe to our newsletter for a daily summary of the startup ecosystem.
Fund performance and life cycle metrics
Unlike traditional venture capital funds that typically have a life cycle of 10 to 12 years, TDV’s second fund has a shorter cycle of 5 to 7 years, allowing for faster returns for its investors. TDV expects to make between 10 and 12 investments annually, starting in the third quarter of fiscal year 2024-25.
“Our proven track record with the last fund has encouraged us to double the target corpus with the second fund and also increase the average investment size,” Sutaria said.
The first fund provided exit opportunities within two years of investment, generating an internal rate of return (IRR) of over 60% and achieving a multiple on invested capital (MOIC) of three in two years and half.
“We hope to continue our trajectory also with the new fund,” he added.
What is the multiple of invested capital?
The multiple on invested capital (MOIC) is a metric used to measure the performance of an investment relative to its initial cost. It is a key metric used in private equity to evaluate the success of an investment and compare the performance of different investments.
MOIC is calculated by dividing the total value of all shares in a fund by the initial investment. The total value includes both realized and unrealized value.
Disclaimer:
The information contained in this post is for general information purposes only. We make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability or availability with respect to the website or the information, products, services, or related graphics contained on the post for any purpose.
We respect the intellectual property rights of content creators. If you are the owner of any material featured on our website and have concerns about its use, please contact us. We are committed to addressing any copyright issues promptly and will remove any material within 2 days of receiving a request from the rightful owner.