Relevance is often bound to rarity. As a result, the first – whether a birthday, an academic achievement, or a vice president – has its own weight. Whether this pressure is warranted is a discussion in itself, but today we are focusing on the ramifications of India’s first unicorn IPO: Zomato.
Food delivery startup Zomato, which will begin trading public stocks next week, has been named by journalists and industry experts as India’s largest public technology offering to date. The company was valued at up to $ 8.6 billion when it went public, and early signs of investor interest have been strong.
As my colleagues Alex Wilhelm and Anna Heim write in their column, the later performance of Zomato is being watched by Paytm and MobiKwik, two Indian fintech unicorns who also want to go public soon, the around 100 Indian unicorns and of course returning-focused Venture capitalist. The startup’s success could lead to more venture capital financing and future exits, and overall represent a milestone for growth investments amid legal and regulatory tensions.
While the pressure on Zomato not to be crushed by the public markets is great, this is not just baseless, forward-looking energy. Our local reporter, Manish Singh, has religiously reported on all the signs India has built on this event, from the frenzy in the early stages of startup funding to the fact that engineers suddenly feel empowered, thanks an increasing demand for more money to ask money.
A Zomato success might get more investors to pay attention to the startup scene, but they will catch up: Indian startups raised a record $ 10.46 billion in the first half of 2021, up from $ 4 billion in the same Period of the previous year. and $ 5.4 billion in the first half of 2019, data insight platform Tracxn told TechCrunch. For comparison: Indian startups raised $ 11.6 billion in all of 2020.
The lesson here, both in life and in startups, is that the first step is rarely the result of a single decision. If you look closely, a massive milestone can often be traced back to an amalgamation of various wins, successes, failures, and minor milestones along the way. This doesn’t take away its title as the largest tech startup to go public in India (relevant and rare!), But it does suggest that ripple effects are not just a side effect of a funding event, but perhaps the trigger for the IPO first place.
In the remainder of this newsletter, we’ll cover new fund manager trends and advice on funding rounds that have nothing to do with the completion of a round. You can find me on Twitter @nmasc_ or listen to me as a co-moderator on Equity.
Emerge, then converge
Credit: Bryce Durbin / TechCrunch
The clip of the closed funds, guided by various, Emerging Fund Manager is unlike anything I’ve seen before. Last week the Female Founders Fund $ 57 million completed for Fund III, Nasir Quadree announced one of the largest solo GP funds, Peter Boyce II is close to closing $ 40 million for Stellation Capital and H Ventures received a $ 10 million debut fund.
Here’s what you should know: More and more established venture firms are turning to aspiring managers and, frankly, to new partners for deal flow, according to my colleague Connie Loizos. Just this week, Initialized Partner brought Parul Singh from the Founder Collective, making her a new partner in the firm. Don’t expect the trend to slow any time soon.
Your round of funding isn’t anything special, but it can be you
Credit: Mohd Hafiez Mohd Razali / EyeEm (opens in a new window)
It can be easier to raise funds than it is to collect donations. As we spoke to special guest Forbes Senior Editor Alex Konrad on our latest Equity podcast, the bar for the “story of the funding round” has never been higher.
Here’s what you should know: To stand out, founders need to be transparent about the competition and their industry, and leave those godforsaken pre-approved quotes and discussion points. We receive specific advice about the show and how a numbing effect could harm historically overlooked individuals.
More tips for fundraising:
All about TC
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Over the week
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