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Mumbai address A2/140, 3rd floor,
Safdarjung enclave, New Delhi- 110029

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123-456-7890

FAQ

Understanding how different venture capital funds operate is unnecessarily difficult for founders. We know because we’ve been on the other side and had to ask the same questions. In an effort to be more transparent and open, we’re sharing qualitative and quantitative data about how we invest, operate, and hold ourselves accountable.

We invest in Seed to Pre-Series A startups that have demonstrated traction-whether through a working product or early revenue. We do not invest in pre-MVP companies.

We are sector-agnostic and invest across multiple industries, including AI, PropTech, D2C, Digital Public Infrastructure (DPI), Manufacturing, SpaceTech, AdTech, Electric Mobility, and Defence-Tech. We have a negative thesis on web 3 and gaming in India.

Our investments are India-focused, backing founders who are building for the Indian market or Indian startups building for the world.

The size of our fund is 30 million dollars.

We have invested in 35 companies across AC Ventures and ACLR8 in 2024 alone. We plan to invest in 400 companies in the next 10 years.

We evaluate each investment on a case-by-case basis. While we don’t have rigid valuation targets, we look for startups with strong unit economics, validated business models, and scalable potential.

Our typical cheque size ranges from ₹50L to ₹4Cr. We are focused on co-investing in the best founders and don’t have an ownership target per se.

We do not lead rounds. However, when we commit to a company, we actively help complete the round by leveraging our network of VC and Angel investors so that the round is closed quickly and the founders can get back to building the business.

We typically do not invest in pre-MVP companies, exception being startups which are founded by:
  • Second time founders who had raised institutional capital in their previous venture and seen some success
  • CXO’s who have a successful track record in funded startups and/or large India companies and are now building a startup
For first time founders, we only back early-stage startups that have a working product and some market validation, even if the revenue is minimal.

Yes, we reserve capital for follow-on investments in high-performing portfolio companies.

Yes, we do not invest in gaming or Web3. We focus on sectors aligned with long-term value creation and keeping in mind the regulatory environment and business opportunity.

Our deal flow comes from multiple channels, including referrals from our 250+ founder network, co-investor partnerships, inbound applications, and our accelerator program (ACLR8). We review 4,000 + startups in a year and invest in 30-40 (< 1% selection rate).

  • Where possible, we strongly recommend a double opt-in, warm introduction which acts as a great first filter. In the past, some of the best references have been provided by other entrepreneurs, co-investors, operators, service providers, friends, and advisors of the fund.
  • We are also open to cold outreach from exceptional founders. If you have a strong product and early traction, feel free to reach out to rishabh@capinity.in.

Many of our portfolio companies secure up-rounds, with valuation increases in later funding stages. We also have co-investments with leading VCs like Peak XV, Kalaari, Blume Ventures, and Y Combinator, increasing the likelihood of follow-on capital.

Our LP base consists of institutional investors, family offices, and successful entrepreneurs who believe in long-term capital allocation.

As an early stage focused fund, our investment process involves an “accelerated process” which includes:
  • Initial screening (founder background, market size, and traction)
  • Deep-dive diligence(unit economics, competitive landscape, and scalability)
  • Partner Discussion and approval
  • IC Review and approval
  • Investment and post-funding support
As an early stage focused fund, we evaluate: –
    • Founding team strength –
      • We prefer teams v/s solo founders.
      • We prefer founders with great academic pedigree and solid operating experience
      • We prefer second time founders or successful CxO’s who are now starting out
      • Founder ability to demonstrate they are a talent magnet by bringing on great first 2-5 employees
    • Market Size and Timing –
    • Product differentiation and defensibility
    • Unit economics and scalability

We prefer second-time founders, but also back first-time entrepreneurs (ex CXO’s) with deep domain expertise, strong execution ability, and resilience.

Founder-market fit is critical. We back entrepreneurs who deeply understand the problem they are solving, either through past experience or unique insights.

We look for well-balanced teams with complementary skill sets, clear leadership, and a shared long-term vision. Shareholding ratio between the founding team and a 8-12% EsoP pool is an important indicator along with deep complimentary skills.

We are flexible and participate in priced rounds, SAFEs, and convertible notes, depending on the stage and structure of the deal.

Founders should align with investors who provide strategic value beyond capital, ensuring a balanced cap table and strong long-term support.