Micro-VC focused firm Upsparks to invest in 100 startups by 2022

FPJ Web DeskUpdated: Wednesday, March 23, 2022, 03:57 PM IST
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Upsparks aims to close an average of 4-5 deals per month with sectors of focus being Web 3.0, Fintech, SaaS and Consumer Tech./Team Upsparks: (L-R) Co-Founders Vinay Jain, Mohamad Faraz, and Shivam Prasad | Upsparks

Upsparks, a micro VC firm focused on early-stage investments, today announced its growth plans to add at least 50 startups to its already existing portfolio of 50 startups, by the end of 2022, reaching a target of 100 crores in investment.

The company aims to close an average of 4-5 deals per month with sectors of focus being Web 3.0, Fintech, SaaS and Consumer Tech. Some of their most notable investments include Pixis, Zypp, BiteSpeed and Decentro.

How does it work?

Being a founders-led investor, Upsparks helps the founder/s solve the most difficult problems including how to hire the right people in the early stage, going to market, channelizing the energy and bandwidth of the founders, getting to PMF (Product Market Fit) faster than usual, and building the right culture for the start-up. In addition, Upsparks claims to have built fool-proof strategies from the perspective of founder/venture investing, with in-depth intelligence on varied fronts. As a founder – led investment firm, Upsparks works closely with other founders to grow and scale their businessesl it said in a statement, it said.

Upsparks enters the funding round during the early stage which entails high risk for the investor and a keen eye for ideas that will make it big. Micro VC investors in India have been playing a significant role in fuelling startups at the early seed stage.

Indian entrepreneurship at an all-time high

Entrepreneurship in India is at an all-time high with Indian entrepreneurs raising $42 billion in capital in 2021, according to reports. The technology sector remains to be a key area of focus for VC investments in India with a 3x increase in VC funding from 2020 to 2021. Sectors of interest included Software-as-a-Service (SaaS), e-commerce, banking, and consumer services.

According to a report by IVCA, the micro VC ecosystem has seen a steady growth over the years with India recording 89 micro VC firms in India versus 60 in 2014. Between 2018 to 2020, investments worth $346 M were infused into the start-up ecosystem from micro VC funds in India. Micro VCs address the funding gap between angel investments where ticket size is low and larger institutional VCs that look for strong product market fit before investing.

Keen to expand portfolio, say co-founders

Commenting on the announcement, Mohamad Faraz, Founding Partner, Upsparks said, “We follow a highly optimized system when it comes to closure of deals as a result of which entrepreneurs feel a high level of security when they approach us with their business ideas. By ensuring that we respond to the startup’s request within a short time period, we are able to close deals at a much higher industry rate. At the Seed stage, it is important that a startup receives the right kind of support, coaching and partnership in order to nurture their growth.”

Shivam Prasad, Founding Partner, Upsparks, added, “We have seen great success in the sunrise sectors so far and are keen to expand our portfolio to bring more such startups with potential into the fray. It is our belief that tech startups will play a key role in achieving India’s vision of a $5 trillion economy by 2025.”

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