3One4 Capital

Funds managed

Fund nameAsset ClassLicense
Fund 1Early StageSEBI AIF Cat 1
Fund 2
Early StageSEBI AIF Cat 1
Fund 3 (Dedicated Opportunities Fund)Venture Capital (Series B onwards)SEBI AIF Cat 1

Fund 3 is a venture capital fund which invests only in selected companies from the portfolio who have reached their growth stage, therefore it says series B stage onwards.

About the AMC

  • 3one4 Capital is a Bangalore, India based venture capital firm. They focus on early-stage investments in enterprise automation, ambient intelligence technologies, consumer products, fintech, media and multilingual content generation, health and machine-driven actionable intelligence services for enterprise.They have funded more than 40 companies including Faircent.com, OnlineTyari, Tracxn, Charmboard, and YourStory and others, and have seen two exits through IPO (as per the data in jan 2018). 3one4 Capital generally makes early-stage investments with ticket sizes ranging from $250,000 to $2 million.
  • The firm works in selected market categories and in the intersection of adjacencies that are large, growing, and ready for unique products and services. The company believes transformative capital is informed, networked and constantly adapting to work with the innovators disrupting large markets. The firm feels this is a critical parameter in a long list of features that combine to realize exponential influence and disproportionate gains.

Key staff

Pranav Pai, Siddarth Pai – Founding Partner

https://www.linkedin.com/in/pranavpai/?originalSubdomain=in

https://www.linkedin.com/in/siddarthpai/?originalSubdomain=in

Jayne James – Finance         

Keshav Sureka – Research   

Kshitij Shah – Principal           

Nagaratna Patil – Investments           

Abhinav Naidu – Corporate Development                 

Ashwini Thulsaram – Finance and Compliance

Investment Philosophy (for firm)

Transformative capital is informed, networked, and constantly adapting to work with the innovators disrupting large markets. It is a critical parameter in a long list of features that combine to realize exponential influence and disproportionate gains.

Media

Title: VC firm 3one4 Capital raises Rs.250 crore second fund, Source: Live Mint, Date: 25 January 2018

https://www.livemint.com/Companies/hJZu5EwSFpvS18iTZF3SjO/VC-firm-3one4-Capital-raises-Rs250-crore-second-fund.html

With the new corpus, the fund will look to enhance its deep involvement model across its investment domains and work closely with companies.The fund’s limited partners (investors in a VC fund) include well-known names such as Kris Gopalakrishnan, co-founder, Infosys; N.R. Narayana Murthy, co-founder, Infosys and Catamaran Ventures; Reliance Ventures; Nandan Nilekani’s family office; and Mohandas Pai’s family office.

Title: MohanDas Pai backed 3one4 capital to raise Rs. 350 crore for new fund, Source: Live Mint, Date: 6 February 2019

https://www.livemint.com/companies/news/mohandas-pai-backed-3one4-capital-to-raise-350-crore-for-new-fund-1549422316267.html

The venture capital (VC) firm’s third fund, will invest selectively in growth stages of 3one4’s portfolio companies

Title: Tech-focussed 3one4 Capital marks first close of opportunities fund, Source: VCCircle, Date: 6 February 2019

https://www.vccircle.com/rupee-to-underperform-in-2019-even-as-dollar-s-dominance-diminishes-poll

Early-stage venture capital firm 3one4 Capital announced the first close of its dedicated opportunities fund that will seek to invest in select portfolio firms that are raising funding from the Series B stage onwards.

Title: Entrepreneur India is unveiling its #Entrepreneur35under35!, Source: The Enterpreneur, Date: 17 February 2017

https://www.entrepreneur.com/article/289389

Siddarth Pai, Founder talks about while launching their new fund, they will be actually involving themselves with entrepreneurs, helping them with management, technology and most importantly with compliances. Then he talks about some ventures they have invested in.

Title: Betting big on the rise of the Indian Startup ecosystem: Pranav Pai, Founding Partner 3one4 Capital, Source: YouTube, Date: 20 December 2019

Talks about India’s startup ecosystem being the 3rd largest in the world after the US and China. 39,000 startups in India today with at least one round of funding and few having multiple rounds.Startups have been rising and are contributing towards the Indian 5 Trillion dollars economy by 2025.

Title: 3one4 Capital Announces Closure Of Two New Funds, Source: StartUp Street, Date: 12 December 2019

https://www.youtube.com/watch?v=Y4ApIHatpG0

Started in 2016 as a 100cr fund house closing at 800 cr. AUM in 2019, from which a lot has been deployed. Stated that they are seeing huge valuation inflation.

Analyst questions

  • Precisely, what fundamentals do you look at while investing?
  • How many rounds of funding at maximum have you provided to a startup till date?
  • Do you change your investment strategy while funding in different sectors or you follow a blanket generalised strategy?
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