Grayscale Ventures’ $20 million pre-seed fund has been achieved, which is a major milestone for startups. The fund will be used to help early-stage SaaS companies get the necessary capital to kickstart their businesses. This means that startups can now access more capital than ever before, as well as resources and mentorship from Grayscale’s network of experienced entrepreneurs and venture capitalists.
The fund will also provide a platform for startups to showcase their ideas, products, and services in order to attract investors and customers. With this new funding opportunity, startups have the potential to reach new heights in terms of innovation and growth.
Grayscale Ventures’ SaaS-Focused Pre-Seed Fund and Why is it Important
Grayscale Ventures is a pre-seed fund that focuses on helping early-stage software companies to get to the next level. The fund provides capital, guidance and mentorship to help entrepreneurs develop their ideas into successful businesses. This is achieved through a combination of investments, strategic advice, and hands-on support.
Grayscale Ventures’ SaaS-focused pre-seed fund is an important step in the development of early stage software companies as it helps them secure the necessary capital to get their business off the ground and grow quickly. Additionally, it provides access to experienced mentors who can provide valuable advice on how to navigate the early stages of growth and develop a successful product.
How This New Investment Opportunity Could Help Your Startup Grow
Investing in startups can be a great way to grow your business, but it can also be a risky endeavor. With the right strategy, however, you can reap the rewards of investing in new businesses and help your own startup grow.
This new investment opportunity could provide you with the resources and guidance needed to make wise investments and see returns on your investment that will help your business thrive. Discover how this new investment opportunity could help your startup grow and set it up for success.
What Are the Benefits of Investing in a Pre Seed Fund
Investing in a pre seed fund can be a great way to diversify your portfolio and get access to early-stage investments. Pre seed funds provide investors with the opportunity to invest in companies at the earliest stages of their development, often before they have even launched.
This gives investors the chance to get in on the ground floor of some of the most promising startups, while also allowing them to mitigate risk by investing in multiple companies at once. In this article, we’ll explore some of the key benefits that come from investing in a pre seed fund.
What Will the Future of SaaS Funding Look Like With This New Investment Model?
The future of SaaS funding is set to be revolutionized with the introduction of a new investment model. This new model has the potential to create more opportunities for startups and entrepreneurs in the software-as-a-service (SaaS) industry. It could also open up new avenues for venture capitalists and angel investors to invest in software companies. With this new investment model, we can expect to see more innovative products and services being developed, as well as an increase in SaaS funding from both venture capitalists and angel investors.
Key Points
- The Singapore-based company will finance software-as-a-service startups with an emphasis on developer infrastructure, AI applications, and industry-specific SaaS companies.
- The maiden fund of Singapore-based Grayscale Ventures has reached its first close, raising nearly half of its $20 million target.
- The 10-year term fund, established by Siddharth Verma and Nikhil Kapur, intends to invest in 15-20 pre-seed stage firms. It has so far made investments in a small number of businesses, including Localwell, a mobile SaaS company for Indian pharmacy shops, and Olvy, a cloud-based feedback SaaS platform provider.
- It has limited partners from all over the world, notably from Southeast Asian nations, the United States, Japan, and India. Founders and operators from companies like Zendesk, Hasura, Slack, GlobalWay, Nexus Venture Partners, and STRIVE make up the majority of the limited partners (LPs).
- Early in 2022, we began speaking with prospective LPs. These sectors that are so deep caught the attention of LPs, and Verma speculated that the next wave of extremely large enterprises would emerge from these themes.
- The two first connected at the venture capital firm STRIVE in Tokyo while assisting it with the deployment of its Fund II and Fund III in India and Southeast Asia. Collectively, they contributed to 25–28 start-ups in the business-to-business sector.
- At that point, they made the decision to establish a fund with an emphasis on the Indian SaaS market. “Over time, we gained assurance that the investments we made at STRIVE were successful. In the previous six years, we made between $18 and $20 million in investments. We currently have a 7X MOIC (multiple on invested capital) in India and Southeast Asia, which gave us the assurance we needed to launch our own fund, according to Verma.
- Capital is effectively used by SaaS enterprises. They can create a few companies with a billion-dollar valuation by raising less than $100 million. Global businesses can be created from India. Basically, that is the idea behind concentrating on SaaS, says Verma.
- The business is placing its bets on the growth of companies from India, such as developer-focused Hasura and the open-source test automation platform TestSigma. The pair had first provided funding for these businesses and others on behalf of STRIVE.
- India is quickly approaching the point where it will surpass the United States in terms of developer population. Last year, 9.75 million Indians used the developer site Github, and more than 2.5 million of those were new users. According to Github’s most recent study, “If this trajectory continues, we project that Indian users will match the present United States GitHub developer population by 2025.”
- In addition to SaaS companies created expressly for a particular industry, Grayscale Ventures anticipates that the next generation of SaaS businesses will be based on artificial intelligence (AI) capabilities, moving away from the current systems of records or engagements style.
- “Our fund economics would only be viable if we stayed with a company for 10–12 years during which time they grew significantly or through an IPO” (initial public offering). If given the choice, we would like to exit the business after eight to ten years or after a liquidity event like an IPO. Not before that,” Verma explains.
- According to Verma, the company has occasionally carried out partial secondary sale exits at the request of founders. According to him, this is frequently the case when businesses are raising substantial amounts of money and investors have ownership requirements that prevent founders from diluting a sizeable chunk of their shares.
- “Our bet is mostly on the founders’ capacity for creating products, awareness of the market they operate in, and product-led methodology. When chatting with founders, we keep an eye out for a few key components, he explains.