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New start-ups bring in big moolah for family offices

December 17, 2021

New start-ups bring in big moolah for family offices

Family offices and high net worth individuals in India have clocked unexpected gains this year. In fact, their aggressive bets on new age Indian start-ups like Nykaa and Zomato has paid off handsomely after both organizations listed on domestic stock exchanges earlier this year.

A report that surveyed 100 family offices and ultra HNIs those whose net worth exceeds ₹500cr showed that over 40% had doubled their allocation to private markets in the past few years.

Cash rich individuals have, instead of being limited partners or sponsors in venture and private equity funds, preferred to cut larger cheques and directly participate in a start-up’s capitalization table, the report which technology platform for start-ups trica has published in collaboration with law firm AZB partners and consulting firm EY.

About 10% of the total funding mopped up by Indian start-ups so far this year came from domestic capital, constituting Indian funds, family offices and UHNIs and angel investors, said Nimesh Kampani co-founder and chief executive of trica, which is a part of start-up investment platform LetsVenture.

Domestic start-ups this year pulled in a record $31.9 billion as of December 10, according to Venture Intelligence data.

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