(1) Their Fund I & Fund IA XIRR figure
- Fund I & Fund IA have produced a pooled 21.5% XIRR
- Fund IA was 31.2% XIRR, Fund I was 19.8% XIRR
This finally puts to rest the question about "is India VC performing or not?" Blume IA was expectational, I was decent..
PS: In the Omega files part I, they had only published the MOIC (multiple on invested capital) which was ~6x which led some people to conclude it was a 15% IRR...
But, that is just the start:
(2) They got Sasha Mirchandani to share Kae Capital I's MOIC and XIRR
- Sasha is notoriously media shy so I think Blume has worked some magic to get him to open the books
- Kae Capital generated ~22% XIRR and 6.5x on capital
- Sasha also proves you can be a Mumbai based VC and (out)perform :)
(3) The unthinkable: Karthik (one of the GPs) shared his own cashflow statement
- This would probably be the 1st time an Indian GP has shared their P&L from a fund
- Karthik's opportunity cost for doing this fund was extremely high (was a ~₹1 crore resource back in '11)
You can also see why building a VC fund is NOT for everyone: Karthik had many lean years (income below ₹25L) ..
But, the best for him is yet to come -- once a VC Firm has multiple funds -- the fee income & carry should easily take him to > ₹5 crore per annum by 2024/2025.
🧠Few reflections:
(a) I thought Omega files part 1 from Blume was bold; this is on another level
(b) The XIRR figures show that as an LP, you need to be in a 'top' fund -- these XIRRs are MUCH better than the average reported by CRISIL (closer to 15% XIRR)
(c) You should read the report (link in the comments)
startups india venturecapital
This post was originally shared by Rahul Mathur on Linkedin.