How 25 Gujarati Tycoons Are Creating a Startup Revolution With Rs 100 Crore

TiE Vadodara is the latest chapter of the organisation :

A group of over 25 wealthy individuals from Gujarat have pooled Rs 100 crore to fund startups. They plan to back at least 50 startups every year with an average investment of Rs 50 lakh.This was launched by the Vadodara chapter of the IndUS Entrepreneurs (TiE), a global network of entrepreneurs. - TiE Vadodara.

The initial goal was to boost Gujarat’s startup scene, and TiE members saw the need to mobilize more potential investors for startups.

Bharat Bafna, co-chair of TiE Vadodara and one of the investors, said that investing in this asset class was very different from other asset classes, such as gold, listed companies, mutual funds etc. He said that it required a different level of risk-taking ability and it was not easy to convert into cash. He also said that out of the 25 investors, only about 12 had prior experience in investing in startups. He and his colleagues persuaded the rest of the investors to try this asset class and put their money into startups.

Rajeev Chandrasekhar, the minister for electronics and IT, was impressed by the idea when they presented it at a TiE Vadodara event.

“He praised the idea a lot. He also said that it demanded more attention and resolve, so that it does not fizzle out,” Bafna said.

Bafna said that the minister praised the idea a lot. But he also said that it required more clarity and dedication, so that it does not fade away.

Later, TiE Vadodara’s president Nilesh Shukla and chairman Samir Parakh told Chandrasekhar that they had gathered more than 25 HNIs who planned to invest over Rs 100 crore in 50 startups.

Shukla and Parikh wrote to Chandrasekhar that they aim to have 200 screened startups for TiE members in the next three years, with a minimum investment of Rs 50 lakh each – totaling at least Rs 100 crore.

Shukla said that they will carefully evaluate the business models and other factors of the applying startups with industry experts. They will also have regular meetings and presentations as part of the ongoing process. He said that this model should be adopted by other states as well.

This initiative coincides with the government’s efforts to create new funding sources for startups.

A recent report by seven working groups on how to use AI for development, said that MeitY Startup Hub has planned a Future Design IndiaAI scheme with a budget of Rs 945 crore and matching industry funding of Rs 3,000 crore for 5 years to support AI startups.

The report said that the programme aims to influence and integrate 725 tech startups in 5 years to create a diverse AI startup ecosystem.

The working group also suggested an AI Ignition Grant Program as part of the IndiaAI, which will provide Rs 30 lakh each to 500 AI/deep tech startups at the product development stage.