There’s an ongoing wave of former executives at a VC firm opening up their own funds, and internet entrepreneurs backing them.
Ravi Venkatesh and Edwina Yeo, previously executives at Tiger Global, riding on the same wave started their own fund Tanglin Venture Partners. As in trend, the VC firms counts several high profile internet entrepreneurs and executives as its key investors.
Flipkart’s co-founder Binny Bansal and CEO Kalyan Krishnamurthy, Udaan co-founder Sujeet Kumar, Facebook’s Asia Pacific head Dean Neary are the few names that ET found out via sources.
Venkatesh and Yeo themselves did not reveal any LPs identity, even when it claims that there are more than 15 marquee Limited Partners for the new fund.
This new fund targets a corpus of $50 million that is to be distributed among 10 -12 startups via an average first ticket size of $3 million.
The VC firm that started operations late 2018, is looking to invest in Indian and Southeast Asian early stage technology startups. The reason behind the same is their study of these economies as fast-growing markets with citizens having a keen interest in a digital lifestyle.
As per ET report, the reason behind the trend of tech entrepreneurs investing in these early-stage backing fledgling VCs is that they get to receive hands-on knowledge of what is up and coming in the market without having to deploy their own teams to keep researching for the same. Further, they also gain information on companies and their evaluation.
Complimenting this is the factor that the VC industry’s ways of working are seeing a change. Earlier focussed on picking up corpus from large and institutional investors, they are now equally inviting tech entrepreneurs and HNIs to become partners in the firms.