Inflection Point Ventures nets 3.5x gains from Otipy
- ByStartupStory | April 14, 2022
When agritech firm Otipy raised $32 million in a Series-B round of funding last month, one of its early investors, Inflection Point Ventures (IPV), sold a portion of its stake. The angel investing platform dubbed it a “fund returner” exit since it was able to recoup its full investment in the company in 2018, by selling a portion of the share at a valuation that was 3.5 times its original investment.
IPV, which invests in pre-seed and seed-stage entrepreneurs across industries, had 13 exits last year and a 190 percent internalized rate of return (IRR), which measures how much money a platform makes for every dollar invested in a company. It generated an 80-fold return on its investment in fintech business BharatPe, as well as Glamplus, QubeHealth, Truly Madly, Samosa Party, Card91, Phable, Hobspace, Pedagogy, Lebencare, Toch, Fitso, and SoStronk, among others.
Venture capital firms have flooded the market to back startups in their early phases, and many CXOs and company founders have turned to angel investment themselves. IPV is an angel platform for CXOs and first-time angel investors, founded in 2018 by Vinay Bansal, Ankur Mittal, and Mitesh Shah. It competes with AngelList and LetsVenture, and has more than 6,600 members. Since the beginning of 2018, IPV has invested Rs 400 crore in 118 portfolio firms.
With a $3 million investment at the outset, Otipy was our largest check to date. When they raised another round, we topped it up again. According to Vinay Bansal, CEO of IPV, “the partial withdrawal from the company has earned us a 3.5x return.”
Bansal stated that by 2022, the platform hopes to have exited more than five companies with an average return of close to five times. In addition, it plans to spend Rs 200-250 crore on 60 firms this year, compared to Rs 215 crore on 51 startups in 2021. Physis Capital, a $50 million venture capital fund, was created last month by the platform to invest in Pre-Series-A to Series-B rounds.
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