Funding startups in Hyderabad
This is a post on angel investors, seed funds and VCs funding startups in Hyderabad. It is part of the series on startup services in Hyderabad startup ecosystem.
If it is all about being in the right place at the right time, then Hyderabad startups have all the right things falling in place for their growth. Angels, investors and everyone with money in this startuphub are starting to believe in their potential and are funding startups in Hyderabad. Here’s a list of top sources of funding available in the Hyderabad startup ecosystem.
Angels, Seed Funds & VCs funding startups in Hyderabad
Labeling itself as the youngest and a fastest growing network of angel investors in India, Hyderabad Angels which is established in 2010 is apparently a “not-for-profit” operating in Venture Capital & Private Equity industry. They facilitate introductions between individual angel investors and potential high growth companies with a focus on early-stage investment. Their investment size is anywhere between 2 lakhs – 2 crore Indian rupees (~ US$30K – US$300k). Reportedly, the biggest difference between Hyderabad Angels and other networks is access to qualified customers and capital. They are open to all sectors and are primarily interested in investing at an early stage, before the VCs come in. Zify, Online Prasad, Edutor, MyLabYogi, NewFloats, WhistleTalk, and Thrillophilia are some of their investments.
A seed stage venture capital fund and a technology incubator founded by Sunil Motaparti in 2012, BitChemy Ventures invests primarily in tech startups. It has started by investing $2 million each in three startups – 3LOQ Labs, Cafyne and Altiux. In December 2014, it also invested in eKincare a predictive healthcare analytics startup. Motaparti aims to combine entrepreneurship, incubation and seed capital with operational management and strategic oversight.
Founded by Vineel Nalla and Sanjay Enishetty in 2014, 50K Ventures provides seed funding up to US$50K (~ INR 30 lakhs) and help accelerate the startups while guiding them to the next stage. They also run 50k Networks, which brings together accredited investors, High Net-worth Individuals and mentors. In addition, they have an office space in Hyderabad to accommodate startups in their portfolio. This Hyderabad-based investment platform backs tech startups in their early-stage and have so far invested in Zify, Violet street and Absentia.
Initiated by Venkat Vallabhaneni, Sridhar Rampalli & Jatin Desai and with a US$15 million initial fund, Parampara Capital is an initiative to encourage entrepreneurs with ingenious ideas and help them evolve those ideas into successful businesses. They not only support entrepreneurs with funding but are very hands-on as they mentor, guide and advise the startups, and this seems to be the basis of their investment mantra. Parampara works to bridge the distance between the idea and success. With a mission to give wings to entrepreneurs, Parampara carefully scrutinizes the entire idea in different stages and funds only those entrepreneurs that have high potential and zeal to carry on the business for a long term.
Ineda is a venture group with a focus on early stage entrepreneurial ideas, mid-stage startups as well as small and medium enterprises (SMEs). They are a new blend of investor, incubator and venture advisory firm and provide a mix of intellectual, advisory and venture capital to several startups and emerging businesses. Ineda’s industry experience spans across Technology, Telecom, Healthcare, Financial services, Cleantech and E-commerce sectors. As per Safir Adeni of Ineda, typical investment range is up to $2 Million with most of them falling in US$200K to US$1M. The investment is also based on the level of advisory and infrastructure capital they can provide in addition to financial capital. For larger deal sizes, they offer M&A advisory and syndication. Besides funding, they also help with incubation, acceleration, strategy, sales, marketing, operations or even hiring.
Powerhouse Ventures invests predominantly in Internet, consumer, mobile tech startups. They seem to be funding startups in Hyderabad and other cities globally with low operational costs. Essentially, within a limited number of specialized and niche markets where they believe the potential for reward outweighs the risk entailed. Their ticket size is anywhere between US$15K – $50K per investment in pre-seed stage startups and US$160 – $320K in growth stage startups. They also participate in follow-on rounds in their top performing portfolio startups. Some of their investments include Sports365, TimeSaverz, Townista etc.
Bangalore based Unitus seed fund which started its Hyderabad operations in November 2014 along with other cities, Unitus is focusing on rural startups and development of low income groups. They invest between US$50k – US$150K (~ 30 lakhs – 1 crore Indian rupees) in the startups that have the potential to help improve the conditions of low income families, and provide seed stage investment. A few of its investments including iStar, Blowhorn, mGaadi, Villgro. They also provide mentoring in exchange of a small amount of equity.
Hyderabad based seed fund and startup accelerator, Uthhishta has focus on B2B software, web, mobile and the cloud computing space. They provide a combination of seed funding in the range of INR 25 – 50 lakh (US$40k – US$80k) in exchange for some equity along with mentoring early-stage startups. Utthishta looks out for creativity, and game changers in the field.
Seed stage venture fund operating in India and US, Sri Capital is founded by Sashi Reddi, an active angel investor. Investment size ranges from $50000 to $500000 (~ 30lakhs – 3 crore Indian rupees) in the seed round for a significant minority stake in the company. Sri so far invested Rs. 25 crore in nine startups, which includes Edutor Technologies, a Hyderabad-based technology company in the education market.
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