Targeting at the growth of early-stage fintech startups across India, Whiteboard Capital, a venture capital firm has doubled its second fund amount and has successfully raised Rs 300 crore. That is why the high efficiency of the firm can be considered – it has already paid 1x to investors and has an unrealized value of 6x from the first fund, which invested in approximately 45 startups for $10 million.
Whiteboard Capital which is co-founded by Sandeep Tandon stands out in the way that it follows both the pattern of incubator and an early stage fund. The firm sends an operating team in its portfolio companies to help them in operations, data and analytics, and technology among others thus providing direct assistance. The second fund which will be closed in December 2023 will target about 50 companies, of which a considerable amount will go to further investments with firms already in the investment pool.
Technology-focused and early-stage investments are the strengths of the firm which often comes to work with start-ups before they even develop their ideas into full business propositions. Such a strategy provides Whiteboard Capital with the ability to invest at low enterprise valuation, typically when startups are at the early stage: they are less than two months old or did not incorporate at all. While having a significant experience focusing on the consumer sector and financial services, Whiteboard Capital is expected to generate large exits on the Indian market with occasional exits in the range of $400-750m as well as several exits in the $3-5 billion range.
Whiteboard Capital’s model of late-stage investment with heavy participation in portfolio companies places it well to play a massive role in the venture capital market given that more technology-focused VCs are shifting towards the consumer market. It also makes it possible for Whiteboard’s portfolio companies to raise additional capital when they are in the process of achieving product-market fit.