In a follow-up to the article on a startup's optimal capital structure (read it here - https://t.ly/ijNCO), Richard Pinto (Principal) and Vignesh Krishnan (Articleship) explore the complementary roles of equity and debt in funding early-stage startups. While equity is crucial in the initial phases for establishing a foundation and allowing flexibility without fixed repayment obligations, it also brings responsibilities such as investor expectations and potential dilution of ownership. Debt, on the other hand, can be strategically employed to manage working capital, extend a startup's runway, finance asset purchases, and facilitate acquisitions, often at a lower cost than equity. The article highlights the several use cases of debt and emphasizes that it should not replace equity but be used alongside it to optimise a startup’s capital structure, enhance operational efficiency, and achieve sustainable growth. Detailed read on our blog: https://t.ly/v0glF
3one4 Capital
Venture Capital and Private Equity Principals
Bengaluru, Karnataka 49,142 followers
Early-stage venture capital firm based in Bangalore, India #RaiseTheBar
About us
3one4 Capital is an early-stage venture capital firm based in Bengaluru, India. The firm works in select market categories and in the intersection of adjacencies that are large, growing, and ready for unique products and services. The themes pursued are SaaS, Enterprise & SMB Automation, Fintech, Consumer Internet, and Digital Health, with a focus on areas such as machine-driven actionable intelligence services, digital media, ambient intelligence technologies, logistics and distribution, and climate tech. At 3one4, the team has intentionally built a long-term commitment to responsible investing and to support the evolution of an ecosystem conducive to RI. This active commitment has helped the firm secure the signatory status to the UN PRI, making 3one4 Capital the first Venture Capital signatory from India and the fifth overall asset management firm approved from the country. 3one4 Capital has been ranked by Preqin, a global reference database for asset management, as India’s top performer for two of its funds in the recent Alternative Assets report. The seed and early-stage funds managed by the firm have been recognised for their performance amongst the India-focused venture capital funds in this Asia Pacific-focused report published in 2021. With industry-leading Net IRRs, 3one4 Capital’s Rising I & Fund II are the top two amongst the best performing India-focused VC funds between the vintage years, 2010-2018. The firm manages INR 4,200Cr+ (USD 520M+) of committed capital and a combined portfolio of over 80 investments across early stage.
- Website
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https://www.3one4capital.com
External link for 3one4 Capital
- Industry
- Venture Capital and Private Equity Principals
- Company size
- 11-50 employees
- Headquarters
- Bengaluru, Karnataka
- Type
- Partnership
- Founded
- 2015
- Specialties
- Venture Capital, Early-stage investing, Seed Capital, and Angel Investments
Locations
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Primary
50 St Marks Road
Office 1, 5 Floor, 1 Sobha
Bengaluru, Karnataka 560001, IN
Employees at 3one4 Capital
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Nruthya Madappa
Partner, 3one4 Capital | Stanford University | Harvard Business School
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Surendra Ramanna
CEO at TRC Worldwide Engineering, Inc.
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Monica Umesh
PE / VC Lawyer | VP @ 3one4 Capital | Forbes Powerlist 2022 | Legal Era's 40 under 40 Rising Star 2022 | Certified Canine Trainer
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Anurag Ramdasan
Partner at 3one4 Capital
Updates
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AEREO, a leading drone-based business intelligence provider, secured $15 million in a Series B funding round led by 360 ONE Asset. The company leverages proprietary drones and AI-powered analytics to manage large capital assets across mining, infrastructure, and land records sectors. Aereo has excelled in the last few years: - 400% revenue growth in the last two years. - Consistently EBITDA positive with a remarkable 70% annual revenue growth over the past four years. 📊 - Mapped 45,000+ villages under SVAMITVA and 50,000 sq. km for DILRMP. 🇮🇳 The investment will support Aereo’s business expansion in India and entry into new markets across Latin America, Central Africa, and Southeast Asia. It will also fuel Aereo’s automation, enhance enterprise applications, augment their AI platform, expand partnerships, and drive R&D. Since our partnership began in 2016, 3one4 Capital has seen Aereo evolve from a hardware-focused venture to a comprehensive drone intelligence enterprise platform. We look forward to Aereo’s continued growth and innovation in scaling the Indian deep tech ecosystem. Vipul Singh | Suhas Banshiwala Read more at Inc42 Media: https://lnkd.in/gASaUeHy
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In a guest column for the Financial Express (India), Siddarth Pai (Partner) highlights India's significant impact on the global digital landscape, noting that Indian innovation powers a substantial portion of the world's software, comparable to Saudi Arabia's oil exports. Despite India being the third-largest startup ecosystem, many successful startups are headquartered abroad due to India's challenging regulatory environment, complex compliance requirements, and punitive tax policies. Recent reforms and initiatives, like the "Onshoring Indian Innovation to GIFT IFSC" report, aim to address these issues by providing tax benefits and regulatory support to encourage companies to return to India. This is crucial for retaining domestic talent and ensuring India remains a global leader in innovation rather than becoming a land of subsidiaries. Read more: https://lnkd.in/gdHp7b2E
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K.V. Kamath talks about the dramatic shift in the banking sector, and in particular, the tech disruption at ICICI in the early 2000s, where the majority of transactions moved from being branch-based to only a percentage happening in branches by the end of the decade. This change, deployed at scale, underscores how rapidly technology can disrupt and transform traditional business operations. Watch the full episode - https://t.ly/bBR5N
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Observability allows engineers to understand a system's internal state from its outputs, crucial to IT and cloud computing. Underpinned by proactive system management and a rapidly expanding space, the observability market is expected to reach a valuation of $62 billion by 2026. We highlight the integration of generative AI and large language models (LLMs) as a transformative force in observability. Leveraging AI in observability tools can drastically optimise operations and slash costs, marking a significant leap forward in how businesses monitor and maintain their IT landscapes. Read more 👇
Observability in the Age of Gen AI
3one4 Capital on LinkedIn
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Writing for the LiveMint, Mohandas Pai (Chairman) and Siddarth Pai (Partner) recommend that India should remove the 'angel tax' (Section 56(2)(viib) of the Income Tax Act) to foster a more supportive environment for startup investments. Angel tax, which targets capital investments at a premium, is counterproductive and hinders the government's goal of attracting capital. Despite various relief measures, the tax continues to stifle startup funding and growth. They suggest that removing this tax will not compromise the fight against unaccounted funds but will instead boost investor confidence and support the growth of India's startup ecosystem. Read more: https://lnkd.in/gBMbd4UC
Drop the angel tax: Stop taxing startup investments as income
livemint.com
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In our recent episode of The Record, K.V. Kamath discusses the potential for private and public sector banks to tap into opportunities at the bottom of the pyramid, where margins are small and profitability requires scale. Watch the full episode - https://t.ly/bBR5N
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One of K.V. Kamath's favourite management mantras is the 90-day rule, which he adopted from a dotcom seminar in New York, where startups took products from concept to market in 90 days to stay ahead of competitors. K.V. Kamath applied this principle at ICICI in 1999 for an American Depositary Receipt (ADR) issue. Despite merchant bankers estimating a year for completion, he set a 90-day deadline, and his team successfully listed within 74 days. Watch the full episode on our YouTube: https://lnkd.in/gy8SeQig
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Floryo, founded in 2022 by Manohar Kumar, aims to surpass established brands like Aashirvaad by reviving traditional stone mill practices to provide fresh, made-to-order wheat flour. Built on the pillars of freshness, customization, quality, and innovation, Floryo targets health-conscious consumers seeking less refined, more nutritious options. Initially selling through its website, Floryo expanded to Amazon, ONDC, and BigBasket Daily. Operating in Bengaluru and Hyderabad, Floryo's hyperlocal approach and promise of 24-hour delivery have helped it expand its product portfolio from 21 to 45 SKUs, with plans to continue diversifying. Read more: https://lnkd.in/gQwn9r5W
How Floryo Aims to Surpass Established Brands Like Aashirvaad Using Traditional Stone Mills
timesofstartupindia.com
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India ranked as the fourth highest-funded country in the global tech startup ecosystem during the first half of this year, with startups securing $4.1 billion from PE/VC. Nruthya Madappa (Partner) highlighted the resilience of India's investment landscape, noting, "India has seen a steady uptick in investments despite deal activity being broadly muted in Asia." She expressed optimism for increased investments through late 2024, driven by strong macroeconomic conditions and robust tech IPO performance. More on DealStreetAsia: https://t.ly/V6s26
India grabs fourth spot in global tech startup funding charts: Tracxn
dealstreetasia.com