How Surat-based Micro VC firm IVY Growth supporting, mentoring 100 startups

IVY Growth Associates was founded by four young entrepreneurs Rachit Poddar, Prateek Tosniwal, Mehul Shah and Sharad Todi in 2021. Based out of Surat, they handhold, mentor, incubate and accelerate early stage startups from the tier 2 & 3 cities and their founders work towards building an ecosystem that is sustainable and scalable in a collaborative manner.

The sector-agnostic angel network and micro venture capital firm currently has 30+ shareholders and 300+ angel investors with over 65+ investments. In an exclusive interview, IVY Growth Associates Co-Founder Rachit Poddar explains Bizz Buzz on how their team is creating a smooth runway for the next generation of unicorn startups from the interiors of the country.

What is the main objective of IVY Growth? Let us know about this platform.

The main objective of IVY Growth is to empower early-stage startups in India by providing them with funding and resources to accelerate their growth. We strive to build a global community of angel investors and startups to create opportunities for collaboration, innovation, and success.

Our focus is on identifying and supporting high-potential startups with innovative ideas and disruptive solutions that have the potential to make a significant impact in their respective markets. We aim to bridge the gap between startups and investors, connecting them with the right resources and opportunities to achieve their goals.

How do you support startups? In what way are you helping them to grow?

At IVY Growth, we provide a range of support services to startups, including mentoring, networking opportunities, access to funding, and business development resources. We also connect them with a global community of investors, offering them the opportunity to scale their businesses and reach new markets.

Through our extensive network of investors and venture partners, we provide startups with valuable insights and guidance to help them grow and succeed. Our goal is to empower startups and help them realize their full potential.

Being a Surat-based firm, how are you funding startups from other States?

As a Surat-based firm, we are not restricted by geography when it comes to funding startups. We evaluate startups based on their potential for growth and success, regardless of their location, and we are open to funding startups from any state in India.

How do you select the startups for funding? What activities do you take up to connect with them? Where do you conduct such programmes and how often?

To connect startups with investors, we organise various events, including our flagship event ‘21by72’, which brings together startups, investors, and industry experts under one roof. We also provide startups with mentorship, networking opportunities, and access to our network of venture partners.

Additionally, we leverage our digital platform to showcase startups and connect them with relevant investors. Our team actively scouts for promising startups and reaches out to them to explore funding opportunities.

What precautions do you follow while investing? What is the average ticket size?

At IVY Growth, we follow a rigorous due diligence process to make informed investment decisions. Our research team conducts a thorough analysis of the industry, startup product, product-market fit, founder fit, and other key factors.

We also have a dedicated due diligence and legal team to ensure all necessary precautions are taken while investing. Our ticket size ranges from $20,000 to up to $500,000.

How many startups were funded so far and how much was invested till now? Out of them, are there any unicorns, or still in the race to enter the unicorn club?

To date, IVY Growth has funded more than 100 startups through our syndication model, with a total investment of $10 million. Among them, we are proud to have invested in promising startups such as Rupeek, Resha Mandi, Zypp Electric, and BluSmart, which we believe have the potential to become unicorns in the future.

How many venture partners are there on board at the moment? How many of them are from abroad? Are you having any plans to increase the number further?

We currently have over 30 venture partners on board, and we have one venture partner in Dubai. We are always looking to increase the number of venture partners on board.

How do you ensure the investors on the growth of the startups? Do you provide any training to them on valuations?

At IVY Growth, we prioritise our investors' interests and ensure that our legal team thoroughly reviews every clause in the shareholder agreement. We make sure that our investors are fully aware of each clause to avoid any misunderstandings.

We have previously conducted a masterclass on angel investing to educate our investors on startup analysis, valuations, financials, and other important topics. Additionally, we have a closed community WhatsApp group where we share the latest news and details about the startup ecosystem, which we believe are important for our investors to know.

Is your platform sector-agnostic to fund startups? Which sectors are you focusing on currently? Are you looking to diversify the funding resources to other sectors?

We are sector-agnostic and are open to funding startups from any sector. However, we currently focus on sectors such as agritech, D2C, cleantech, SaaS, and EV. We are always looking to diversify our funding resources to other sectors and welcome startups from other sectors to apply for funding.

How do you see the impact of the recession on the startup ecosystem in India?

The impact of the recession on the startup ecosystem in India has been significant. However, we believe that startups have the potential to drive economic growth and create jobs, and we remain committed to supporting and funding startups during these challenging times.

We believe that startups that are innovative, agile, and resilient will emerge stronger from this crisis.­