These Two Top VCs Have Had the Best Experiences From Working Together With Founders
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For Siddarth Pai and brother Pranav, founding partners at venture capital firm 3one4, the best experiences have come from working along with start-up founders, co-investors, and their community of partners. They say it is not to claim moral superiority over other firms, but create value for everyone involved in a way they know best.
“We do not invest in companies for the privilege to run them.”
Both believe that over the course of working with more than 50 start-ups, one of the most valuable learning has been the process of building a bridge of trust and confidence through multiple micro-interactions.
Bengaluru-based 3one4 Capital has made investments in the likes of online meat brand Licious, and digital entertainment company Pocket Aces.
“We are fortunate to have the opportunity to work with some terrific founding teams from day one of their companies,” the brothers say.
Journey of Hits and Misses
The firm’s biggest company has grown more than 150 times in value since they first invested in it, according to the Pai brothers.
“While a triumph can only be claimed upon the actual exit, we are delighted to be working with several companies that are in the range of 5-25x in value as well,” they say.
Along the way, they have also missed out on a few investments. “We have passed on a few companies that have gone on to grow in value over 4-8x since we first saw them.”
And while they certainly see those as misses, the brothers believe it is a good sign for the ecosystem that numerous start-ups are showing growth.
Taking No Chances
3one4 has a firm set of investment areas. “We don't support chance as a parameter of an investment decision, nor would we encourage anyone else to,” they say.
The firm manages assets worth $110 million or INR 800 crore.
Citing a quote about being wise and turning a chance into good fortune, the brothers say they would rather not assume to be so wise, and it seems to be working for them so far.