Blume Ventures, a robust early-stage venture capital firm, is basking in the success of its maiden fund launched in 2011, reaping a remarkable 5x gross return. The company has set its sights on an even greater 6x return by 2024.
Founder and Managing Partner of Blume Ventures, Karthik Reddy, expressed, “The strong performance of our Fund I, conceived and executed during the nascent stages of India’s venture and startup ecosystem, stands as a testament to the resilience and innovation of Indian startups. It is crucial to acknowledge and celebrate these successes, not only as a milestone for Blume but as a clear indicator that dispels any misconceptions about the potential for exits and liquidity in the Indian market.”
Blume Ventures Initial Fund Demonstrates Positive Prospects
The Blume Ventures initial fund, starting with Rs 98 crore, expanded with an additional Rs 24.5 crore through Fund 1A in 2013. It invested in over 70 startups from 2010 to 2015, boasting notable names like GreyOrange, Zopper, Exotel, and WebEngage. This successful venture, set to complete its lifecycle in 2023, is backed by 80 domestic investors, including Technology Development Board and SIDBI.
Blume Ventures reported that 17 companies, constituting roughly 20% of the portfolio, generated a staggering 98% of the fund’s gross returns. Notable among these are GreyOrange, Carbon Clean, Turtlemint, and others, with the top three alone contributing 3x of the entire fund’s returns.
Reddy emphasized, “We’ve always believed that while the returns of a VC fund are typically discussed amidst much secrecy, there’s immense value in sharing these figures more broadly with the ecosystem. At Blume, we’re committed to fostering a transparent discourse in the industry.”
Blume Ventures acknowledged a loss ratio close to 50% concerning the count of startups, yet significantly lower on the capital front. This underscores their belief in the strength of transparency within the VC landscape.
