Blume Ventures, one of the country’s most active angel investing fund, has gone into reserve mode, limiting new investments to preserve rest of its money for follow on investments in companies it has already invested in.
In 3 years from its first closing (Rs 100 cr & 60 investors), Blume has invested in over 60 companies, making it one of the most active angel funds in the country.
Until it raises its second fund, which is expected to be around $50 mn, it is likely to go slow on new investments. In an update to its investors, Blume said that in 2014, the fund expects its protfolio companies to deliver
8-10 Series A (Blume has already had 6 series A’s) 2-3 Series B’s (From the 6 Series A companies) 2-3 Small acquisitions/ exits (In addition to Qubecell & Adepto) 1-2 Tiny specks on the horizon, probably Blu Swans (subset of A/B list)
Blume Ventures is calling companies that will create an aggregate shareholder value of Rs 1000 cr as Blu Swans. The investor update said
At your fund, we’re beginning to spot some Blue Swans in the distant horizon. It’s an incredible feeling to see them emerge. Yes, these are forward-looking crazy statements. But, we’re happy to make them transparently to our investors.
The Rs 100 cr fund has invested in more than 60 early stage companies by leading the round or by being part of a syndicate. It’s investmtmens mostly fall into categories such as Internet & mobile technology, consumer brands, finance and services and emerging and alternative technologies. Here’s a quick look at its investments that have had a “material positive” effect.
Blume buckets its portfolio companies into Alpha and Beta. The former is a list of lead investments it has made and also largeer syndicate investments where its total exposure exceeds Rs 1 cr. The beta list consists of small investments made as part of a syndicate where there are larger number of investments but less $$s committed.
Here’s a look at city wise distribution of its investments.
Between July- September 2013, Blume lead investments in AudioCompass, Homeveda, IndianStage, Kuliza, PescaFresh, TurtleYogi. In the same period, it made syndicate investments in Instamojo, Purlle, Systematics, Tookitaki, Tripvillas and VoxPop. To return 3x of the fund, Blume will need bigger exits that comes from the Blu Swans its looking for.
Few of the most promising Indian startups from our list of 100+ startups have been backed by Blume. If some of the companies it has backed take off, this might just be possible.