Telangana has executed many initiatives in recent times, garnering the attention of numerous national and international financial giants feeling fascinated towards Hyderabad. The city has shown a huge potential in terms of SMEs and start-ups, says Vaddi Satyanarayana, Executive Director and Chief Operating Officer, GOLDMARGH Venture Capital, in conversation with Sudheer Goutham of Elets News Network (ENN).
How do you perceive Hyderabad as a land of opportunities for NBFCs?
Hyderabad holds huge potential in terms of Small and Medium-sized Enterprises (SMEs) and start-ups. People, not only in Hyderabad but across Telangana, are highly educated and hold huge potential to become entrepreneurs. This State, in particular, is a hub for entrepreneurship.
In the last five years, a lot of start-ups have come up with very progressive ideas but they want funds to execute these ideas, NBFCs play a very important role in this regard. They always look for assessing better concepts.
NBFCs are now identifying good concepts and ideas to promote entrepreneurship across the State. Start-ups now prefer Hyderabad over Mumbai and Bengaluru.
Hyderabad is increasingly emerging as the hub of start-ups. Do you think the Government intervention can be beneficial?
Yes, the government inventions are indeed very significant in terms of setting up start-ups in Hyderabad and promote new innovative ideas. They should think about offering subsidies or provide recommendation pertaining to funding.
NBFCs can also help the Government in this regard by helping start-ups in learning financial discipline. There are organisations that are charging mentorship fees from the start-ups, as high as Rs 50-60 Lakhs. Government can intervene here and offer mentorship to the start-ups free of cost.
Tell us about GOLDMARGH Venture Capital
GOLDMARGH Venture Capital invests in start-ups and independent VC (Venture Capital) funds worldwide. It invests in seed, early-, and late-stage Venture Capital rounds and participates in the followon investments in privately held companies. Depending on the stage of the company the initial amount of investment ranges from Rs 50 Lakhs for a seed funding to up to Rs 2 crore in an early to late-stage funding round. invests in start-ups and independent VC funds worldwide.
Our typical aggregate investment allocation per portfolio company ranges, including follow-on investments, typically between 25 to 51 per cent equity position in each company. We prefer to syndicate our investments with existing or new investors in the company and can take the lead as necessary. In addition, GOLDMARGH invests in select regional or industry-specific independent VC funds.