Early-stage focused micro venture capital firm Trillion Dollar Ventures (TDV) on Thursday launched its second fund with a corpus of Rs 50 crore. The fund, which focuses on pre-seed and seed-stage startups, would invest Rs 1-2 crore per startup. The fund will likely make 10-12 investments annually starting the third quarter of financial year 2024-25.
TDV said it has already been receiving strong commitments from limited partners including global unicorn founders, family offices and CXOs from different industries in India and the US, the UK, UAE, and Singapore.
Founded in 2021 by former entrepreneur and angel investor Ujwal Sutaria, Founder & General Partner, TDV Partners said the fund lifecycle has been kept between five to seven years which is half of traditional fund life cycles that range from 10 to 12 years, thus returning capital faster to the LPs for more active deployments.
The new fund will back startups with business models around platform plays, marketplaces, and exchange businesses across various consumer tech (B2C) categories. This would include spirituality-tech, fintech, gaming, creator economy, social, and consumer upgrade.
Speaking on the new fund, Sutaria said, “Our proven track record with the last fund has encouraged us to double the target corpus with the second fund and increase the average investment size too.”
“With our first fund, we have provided an exit opportunity within two years of investing in the company and generated over 60 per cent IRR (internal rate of return). The first fund’s MOIC (multiple on invested capital) is three within two and a half years. We are confident of continuing our track record with the new fund as well,” he added.
MOIC is a performance metric used in venture capital and private equity to assess the return on an investment relative to the initial amount invested. It calculates how much money has been generated by an investment, whether realized or unrealized, and compares it to the initial investment.