Our Focus

The world’s best businesses emerged from meeting the most prolific human needs and were built by individuals who saw the future. We see tomorrow’s world emerging in India through Indian initiative, and built around global needs. And we believe that technology is the game changer – much more so in the future than till now.

YourNest is sharply focused on co-creating futuristic businesses, by investing in them in pre-Series A rounds.

Investment Approach

Our approach towards investing is three-pronged. It focuses on delivering superior returns, mitigating risks and executing healthy exits.

  • Delivering Superior Returns

    The Uniphore exit (June 2020) gives the fund an enviable DPI of 0.6x with a single exit. The Fund Managers continue to work actively towards healthy exits in YourNest Angel Fund.

    To deliver superior returns YourNest focuses on the following:
    1. Selection Criteria: Backing the right team and the right idea – first generation entrepreneur led team with complementary skill sets; a unique and scalable idea; right attitude and a focused approach.
    2. Valuation: Adequate capitalization without overt dilution. Spotting an opportunity early-on allows us to lead the first round of funding.
    3. Handholding: Easy accessibility to the investment managers, periodic operational reviews along with supportive sessions on business progress and strategy. YourNest plays the role of a dispassionate observer, counsellor and coach to the investee teams. High-levels of engagement keep the focus on delivery.
    4. Team building: Ensuring that right people are selected in the team. Helping them develop leadership capabilities and advising on change management as the business scales up.
    5. Systems and Process Development: Advising and assisting in setting up appropriate systems and processes for ensuring efficiency in operations, objectivity in decision making and regular monitoring.
    6. Advisory Network: Access to a set of highly experienced professionals and mentors to ensure fast growth and judicious decision making by the investees.
    7. Operational Freedom: Providing the founders (of start-ups) operational freedom to build their business and manage the day-to-day operations. At the same time building high levels of trust in the relationship and be partners in the journey. By having a significant minority stake, YourNest retains enough room for future dilution and funding options.

  • Mitigating Risk

    Early stage businesses have their own challenges. While ensuring that the business ownership and accountability is with the entrepreneur, a number of checks and balances are put in place to ensure investor protection. Risk mitigation is exercised through-
    1. Time & Portfolio Diversification – Investment is spread over 5 years with 10-15 start-ups.
    2. Milestone based disbursements – Investment tranches are linked to realistic milestones with a clear objective of injecting capital. This helps the entrepreneurial teams to stay focused on building the business.
    3. Effective deal structuring & investor protection – This is ensured with measures such as founder vesting, founder lock-in, pre-emptive right, liquidation preference, information rights, right of first refusal, valuation protection, tag along, drag along, special rights to exit etc.

  • Executing Healthy Exits

    YourNest is cognizant of the fact that the key measure of success for a first-time fund is the quality of start-ups and successful exits. With this in mind, the endeavour is to support the entrepreneur to realize their dream – building a successful enterprise – and thereby execute a healthy exit for our investors.

    As our portfolio start-ups grow, we would require larger capital inputs from investing partners, given our fund size and our focus on early stage ventures only. At this stage, we are likely to see part exits to a growth stage Venture Capital Fund.

    We are committed to building businesses that exit to strategic partners while having multiple exit options including 2nd stage VC, strategic buyout, M&A, PE and listing on the SME Exchange. We also retain the option to participate in the subsequent rounds of funding so that returns from eventual exits are favourable for our investors.