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Send us a message
Mumbai address A2/140, 3rd floor,
Safdarjung enclave, New Delhi- 110029
info@mysite.com
123-456-7890
FAQ
1. At what stage do you typically invest?
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.
2. Which industries and business models do you focus on?
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.
3. What regions do you primarily invest in?
Our investments are India-focused, backing founders who are building for the Indian market or Indian startups building for the world.
4. What is the size of your fund?
The size of our fund is 30 million dollars.
5. How many startups do you invest in per year?
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.
6. Do you have specific valuation benchmarks for your initial investment?
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.
7. What is your typical investment amount and ownership target?
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.
8. Do you lead funding rounds, co-lead, or participate as a co-investor?
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.
9. Do you consider investing in companies that have not yet generated revenue?
- 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
10. Do you provide follow-on funding after your initial investment?
Yes, we reserve capital for follow-on investments in high-performing portfolio companies.
11. Are there any sectors or industries you avoid investing in?
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.
12. How do you source your investment opportunities?
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).
13. Do you review unsolicited pitches or cold outreach?
- 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.
14. What percentage of your portfolio companies go on to raise further funding?
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.
15. Who are your Limited Partners (LPs)?
Our LP base consists of institutional investors, family offices, and successful entrepreneurs who believe in long-term capital allocation.
16. What does your investment process look like?
- 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
17. What are the core factors you assess before making an investment?
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- 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
- Founding team strength –
18. What qualities do you look for in founding teams?
We prefer second-time founders, but also back first-time entrepreneurs (ex CXO’s) with deep domain expertise, strong execution ability, and resilience.
19. How important is the founder’s alignment with the market they are targeting?
Founder-market fit is critical. We back entrepreneurs who deeply understand the problem they are solving, either through past experience or unique insights.
20. How do you evaluate the dynamics within a founding team?
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.
21. Do you have a preference for priced rounds, convertible notes, or SAFEs?
We are flexible and participate in priced rounds, SAFEs, and convertible notes, depending on the stage and structure of the deal.
22. What should founders consider when bringing in other investors as part of their fundraising round?
Founders should align with investors who provide strategic value beyond capital, ensuring a balanced cap table and strong long-term support.