Inflection Point Ventures (IPV) has given a 61 per cent IRR (Internal Rate of return) to the investors from 14 exits in 2023.
In 2023, IPV recorded a 217 per cent IRR (about 40x month-on-month) with a full exit from Project Light. Along with three full exits, IPV secured partial exits from 11 other startups through the year, delivering IRRs ranging from 20 per cent to 97 per cent. “These exits, involving over 1,000 individuals’ investments, translated into lucrative returns, with an average holding period of 1.5 to 2 years. Notable successes include partial exits from high-performing startups like Oorjaa, Devnagri, Aerem, and Ishitva generating an average IRR of 80 per cent. With this, IPV has announced 38 exits in under five years,” the company said in a statement.
Inflection Point Ventures Founder and CEO Vinay Bansal, says, “Once again, IPV has emerged as the most active angel investing platform in India despite the ongoing funding winter. With its sharp investment strategy and belief in innovative sustainable startups, IPV will continue to evaluate high potential startups in 2024.”
IPV’s LetsGrow program, innovative partnership programs, particularly with investment banks, contributed to this.
IPV’s Co-founder Ankur Mittal, says, “At IPV, we have always believed in investing in great founders at reasonable valuations. This eventually results in successful exits for our investors. We are a big believer of helping our founders scale up by leveraging our rich network to help companies not only get timely capital infusion but also rich mentoring to grow their businesses.”
It has been a challenging year for the overall startup ecosystem, not only in India but globally. Startup investing is considered as a risky asset class and typically has a failure rate in the excess of 80 per cent. So far, out of a portfolio of 200, only 10 startups couldn’t return capital to its investors, the company stated.
IPV shared that it valuated over 7000 startups in 2023 and funded 56 deals during the year. Of these, 10 were uprounds, thereby supporting its founders in subsequent funding rounds as well.
IPV’s member base has expanded to over 12,000 individuals across over 46 countries, offering them the opportunity to engage with IPV’s distinctive and specialised method of early-stage investing.