Blume Venture Partners launches Founders Fund to strengthen its network
Early-stage sector-agnostic fund Blume Venture Partners on Friday announced the launch of its founder network initiative - Blume Founders Fund. A carve-out programme, it will utilise one to two percent of the investment firm’s core investment funds.
The fund aims to invest $25,000 to $100,000 depending on the size of the round, strength of the relationship, etc.
A statement shared by the investment firm said the programme will not be reserving capital to invest beyond the first cheque. The idea is to build long-term relationships with founders and extend Blume’s platform and network to these founders.
Managed by Sarita Raichura, Principal at Blume Ventures, who was previously with the Indian Angel Network, the fund will also be mentored by Sanjay Nath, Co-founder and Managing Partner, Blume Venture Partners.
This initiative began in the last year of Blume Fund III's three-year primary investment period, and Blume expects to invest in 12-15 founders through this programme. Blume also looks to go deeper in terms of commitment to the Blume Founders Fund in its next fund.
Sanjay said, "Founder journeys are about taking the long road, and all start with relationships and trust established early on with their investors. We are excited to bring Blume's aggregate brand value, networks, and knowledge base to help our Blume Founders Fund cohort, build, hire, collaborate, and scale. With 2020 continuing to fuel the rise of entrepreneurship, the new year is a great time to launch this Fund and partner more closely with new Indian founders starting up".
Blume launched the programme in the last quarter of 2020 and has made five investments so far. It has now invested in, the short-form video commerce; content app Indiagold, a fintech startup helping India meet its credit, consumption, and savings needs; and Monrow, a DTC brand; an autonomous robotic venture and a fintech venture.
The statement added: "Through this programme, we expect to nurture founders who are Blume alums - Blume portfolio founders, Blume team members, Portfolio companies' team members; Blume "Scouts" - Blume founders as well as advisors who have a strong long-term affinity to Blume, may drive us to invest in founders who they believe align well with the Blume value system.
Deepak Abbot, Founder, Indiagold, added, ”Blume is regarded as one of the most founder- friendly investment teams in the country. We got an opportunity to be a part of their network through BFF and we are glad to leverage their network strength and the support of their team, which is proving to be quite useful for us at this early stage”
"Like most top funds in the country, Blume receives 1000s of aspiring founder pitches a year. As the fund house has matured over the decade, it now runs a concentrated portfolio construction of 25-30 investments built over a three-year primary investment cycle. Outside of the 8-10 investments we can make in a year, we see hundreds of highly referred founders through our close network," the company added.
According to Veena Ashiya, Founder, Monrow, “I have always found the Blume team to be very nurturing. At an early stage, for a lot of companies, such guidance is almost like a super booster.”