Sharks Fund bags $72 million from advisory major KappaC, to boost early stage start ups
New Delhi (India), April 27: Sharks Fund, an investment advisory company with a network of over 250 investors, has received a $72 million funding commitment from Jindal Finlease-backed KappaC.
KappaC is a Madan Jindal backed global investment advisory firm that help startups with product innovation, engineering capacity, talent scouting and funding. It is also an advisory to Jindal Buildsys Ltd, Jindal Niryat Ltd., Jindal AgriFoods Pvt.Ltd and Jindal Buildtech Pvt. Ltd., among others. The confidence shown by KappaC on Sharks Fund by committing a $72 million funding support goes on to show that Sharks Fund (SF), even in its early days of existence, has proved its worth in the start-up funding space.
“The $72 million commitment from KappaC is an acknowledgment of our efforts to match up right start-ups with the investors. This is also a testament to us establishing ourselves as a trusted partner for both start-ups and investors in quick time,” says Arjun Chaudhary, CEO and founder, Sharks Fund.
He also said that the trust reposed by KappaC and other 250+ investors will further encourage Sharks Fund to continue its efforts towards helping bridge the funding gap for start-ups.
Sharks Fund helps startups raise funds for their venture through a network of more than 250 investors which includes venture capitalist, angel investors, HNI and NBFCs. It also runs its own fund called Jarvin Investments.
The start-up ecosystem in India is buzzing with activities over the past few years. India has produced over 80 Unicorns and the Indian start-up ecosystem has received over $40 billion in funding since 2014, and yet so many bright ideas and start-ups with big potentials fall through the cracks. And the reason for the same is lack of proper guidance to these start-ups.
The reason most businesses fail at the conception stage is the fact that founders end up spending a lot more time worrying about a source of funding than focusing on executing their business plan. The founders also realise that there is no set path for attracting investors, and they end up spending a good amount of time finding the right path to investors.
That is where, Sharks Fund with its reach, network and experienced team, can come handy in bridging the gap between new companies and the investment opportunities they need to grow.
According to the CEO, Sharks Fund essentially helps new start-ups to the find right avenues for growth via a funding structure that suits their requirements.
And how does SF achieve this? Through its huge network of investors including venture capitalists, high net-worth individuals (HNIs), angel investors and more. All a founder has to do is provide all the key details of her start-up like business plan, future projections, current valuations, rounds of investment and type of investment sought.
“Our process involves gathering key information about new ventures and their status in the market in real time. With key details such as the business plan, growth rate, projected growth rate, seed money, current valuation, and mode and value of investment sought, Sharks Fund then sets up an internal committee to help ‘groom’ each application for the team of investors,” says Apoorv Chopra, COO, Sharks Fund.
Once your business is shortlisted, a separate file is created for your business and an account manager is allotted to you who then guide you on the best ways to present your business as lucrative, investible, and valuable for any potential investor. The account manager finds ways to not only make your business look profitable but also offers valuable guidance on finding the right footing in the industry.
After vetting your business and ‘grooming’ your application file, it is then sent forward to the investor connections at SF depending on their requirements and interests. Once an investor expresses interest in your plan, a meeting is facilitated by Sharks Fund to help the two parties meet and discuss the future course of action.
Sharks Fund’ unique way of vetting the start-ups and the amount of due diligence that goes into correct assessment of the potential of the business has received wider acceptance by the investors’ community, the proof of which is a large number of investors coming forward to collaborate with it.
Talking about their rationale for committing $72 million towards Sharks Fund’s efforts, KappaC advisory, Board of Director Vikas Dureja, says:”The economy is always changing. Therefore, business strategy should change to adapt. And the way to adapt is to find new ways to add value to the customers lives. With this association, we are doing exactly that.”
Sharks Fund, which borrows its name from the popular reality TV show Sharks Tank, is making all the right moves to emerge as one of the most prominent advisors and mentors in the start-up ecosystem of the country. It’s only time when start-ups across the length and breadth of the country would realise the importance of role played by it.