How VCs pick winners and deploy funds

Venture capitalists invested nearly $1 billion in Indian startups in 2011, a milestone that has significant implications for the entrepreneurial economy here. Venture capitalists, investors who put money behind young ideas, have rediscovered the Indian market in the last 5-6 years and the momentum continues well into this year. Yet for every startup that raises venture capital, there are at least a hundred that never come even close to a termsheet.

How do venture capitalists go about the business of investing their funds? How do they pick winners? How do they craft their exit strategies at the investing stage? Anand Lunia, founder and partner India Quotient, offers some answers in the slides below, which were part of the first StartupCentral Venture Capital Masterclass held last month in Mumbai.

About Anand Lunia

Prior to starting India Quotient, an early stage venture capital investment firm that focuses on pre-Series A stage startups, Anand was part of the core investment team at Seedfund Advisors. During his five-year stint at Seedfund he invested across sectors such as healthcare, technology, Internet and mobile. Earlier, Anand spent over a year as executive vice president, operations, at Hurix Technologies. His first brush with entrepreneurship was as co-founder of Pune-based elearning startup Brainvisa Technologies, where he led multiple rounds of venture capital fundraising, before it was acquired by US-based Indecomm Global Services. Anand holds a Master of Business Administration degree from the Indian Institute of Management, Lucknow.