Tim Draper is backing Indian startups once more with Blume Ventures alliance
An early level fund that’s changing into a significant participant in India’s burgeoning tech scene, Blume Ventures, has joined the Draper Venture Network, the buyers introduced on Monday. Members of the DVN collaborate on investments, proportion industry intelligence and syndicate their offers to corporations in Silicon Valley, with portfolio products and services equipped via a native group there.
DVN claims that jointly, its ten member corporations now have about $1.6 billion in belongings below control, and for the reason that workforce’s inception within the 90s, that it has sponsored about 600 startups chalking up 200 exits, together with blockbusters like Skype, Baidu, Twitch and Cruise Automation. Formerly referred to as DJF Innovation, the associate community a raffle corporations was once as soon as most commonly US-focused, with native contributors scouring the country for offers another way misplaced on Silicon Valley. Over the years, that associate community shuttered some workplaces, opened new ones, and morphed into one thing extra global.
Despite India’s rising center elegance and wealth of engineering skill, it’s unexpected to peer Draper-affiliated funding process there nowadays. In 2016, Draper Fisher Jurvetson offered off the belongings of its DFJ India fund to Hong Kong-based NewQuest Capital Partners, a personal fairness company, supposedly for pennies at the greenback. The company had established a neighborhood department in India in 2007, however close it down in 2013 to ship what price range it might again to LP’s. DFJ was once no longer by myself in environment Indian investments apart for a time. Canaan Partners offered the belongings of its Canaan India fund to JP Morgan in 2015, as smartly.
Even nowadays there are fears that the Indian marketplace is experiencing personal marketplace over-valuation, in different phrases, a startup and tech bubble. So what introduced Tim Draper again to early level making an investment in India? He wrote in an e mail to TechCrunch: “When Prime Minister Modi decided to clean up the Rupee it sent a strong message to investors like me that the Indian history of corruption may be coming to an end. We have had such great experiences with Indian entrepreneurs in Silicon Valley…With a clearer rule of law, India might just take off.”
Draper stated that perhaps Blume and DVN will do offers in post-seed thru Seres B level firms founded in India which can be “serving the long tail,“ i.e. working to improve currency, legal, insurance, accounting and banking infrastructure there. “I expect Bitcoin, the Blockchain and smart contracts to play an increasingly important role [in India] along with marketplaces where people can use distributed information and services, and other advances that entrepreneurs dig up,” Draper stated.
Draper Venture Networks’ Executive Director Gabe Turner added, “The Indian consumer opportunity continues to be massive, with mobile usage, the middle class, and “Bharat” or “the real India” out of doors the foremost city spaces, rising at a fast tear.” Founded in 2010 via Karthik Reddy and Sanjay Nath, Blume has invested in startups going after “India-specific, large market problems,” Turner stated.
Its portfolio contains: Railyatri, the educate shuttle app that provides customers actual time schedules, seat availability forecasts and extra by means of cellular; Mech Mocha which makes cellular video games in native languages with regional subject matters and related cultural icons; and startups advertising complicated applied sciences to international engineering and production issues equivalent to Grey Orange Robotics, Locus Robotics and Carbon Clean Solutions. Blume closed its 2nd fund at $60 million in October ultimate yr.
Featured Image: Wara1982/Shutterstock