SUMMARY
- Whiteboard Capital has recently announced the conclusion of its second fund with an investment corpus of Rs 300 crore.
- The fund has attracted a diverse group of LPs, including several family offices and domestic institutions.
- Its investment strategy is focused on supporting 50 companies, with an emphasis on making follow-on investments in its existing portfolio.
Whiteboard Capital, an early-stage venture capital fund, has recently announced the conclusion of its second fund with an investment corpus of Rs 300 crore, which has more than doubled its initial target of Rs 150 crore. Though the announcement has been made recently, the second fund closed in December 2023.
According to an official report from ET, the fund has attracted a diverse group of limited partners (LPs), including several family offices and domestic institutions. Its investment strategy is focused on supporting approximately 50 companies, with a particular emphasis on making follow-on investments in its existing portfolio.
Founded in 2017 by Freecharge’s Sandeep Tandon, Whiteboard Capital is a sector-agnostic venture capital fund that invests in startups across various sectors, including consumer, financial, and healthcare. The VC firm counts notable entities such as CRED, Jupiter, and NatHabit within its portfolio.
Presently, approximately 40% of Whiteboard Capital’s investment volume is dedicated to the consumer sector, encompassing both consumer brands and consumer technology companies. The remaining 30-35% of the portfolio is allocated to financial services entities.
The firm divides its portfolio investments into two distinct categories: core and non-core companies. For the purpose of its second fund, core companies are identified as those in which the firm maintains a stake exceeding 7.5% ownership and has invested a minimum of $200,000.
The firm boasts a return on investment (ROI) of 1X for its investors and an unrealised gain of around 6X from its inaugural fund, which allocated $10 million to approximately 45 startups.
Anshu Prasher, a partner at Whiteboard Capital, has shared insights with ET, revealing that the first fund successfully exited from eight startups, either in part or in full.
Whiteboard Capital distinguishes itself from its peers by integrating the roles of an incubator and an early-stage fund, offering a unique approach to venture capital.
The establishment of this fund coincides with a period of growing optimism among investors regarding the resurgence of the Indian startup ecosystem.
An Inc42 survey highlighting “India’s Top Startup Investor Ranking H1 2024,” indicated that 93% of over 50 investors believe 2024 to be a pivotal year for enhanced funding opportunities for Indian startups, with only 7% expressing concerns about persistent funding challenges.
Pantomath Capital Management has launched its second Category II Alternative Investment Fund, Bharat Value Fund (BVF), while Gemba Capital has initiated its second fund with a target corpus of Rs 250 crore, including a green shoe option of Rs 50 crore.
Moreover, Next Bharat Ventures has announced the launch of an Rs 340 crore fund and a residency program aimed at fostering the growth of the social impact startup ecosystem in India.
