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Young Turks: Experts decode role of ultra-high networth investors in tech startups

Updated : June 17, 2021 20:45:22 IST

India will have 10,000 ultra-high networth investors (UHNIs) including business leaders, celebrities, NRIs and digital entrepreneurs with a cumulative wealth of $700 billion by 2024.

Infact, these UHNIs are likely to invest a whopping $30 billion into Indian tech startups by 2025, according to a new report by 256 Network and Praxis Global Alliance titled 'Turning Ideas to Gold'!

Over the last few years, India's startup ecosystem has seen the rise of a new class of investors - the family office. These ultra-high net worth families and individuals, plush with capital, traditionally used to invest in equities, debt and real estate have now turned their focus on India's buzzing tech startup ecosystem.

According to the report the total market capitalization of India's public tech companies is 12.6 percent of India's GDP while the valuation of private tech companies is 10.2 percent of India's GDP.

It is clear that the private market is key for the growth of India's technology sector. Over 250 private Indian tech companies with valuations upwards of $100 million have the potential to go public in the medium term. In just this year we will see some of India's most valued tech startups hit Dalal Street - from Paytm to Nykaa to Delhivery, Policybazaar and Zomato...with many more to follow.

So, what role can family offices & UHNIs play to support the growth of India's tech startups? And how can the venture capital investor ensure this capital reaches the right enterprises and powers innovations of the future to enable India's tech startup tale turn in a global success story? To discuss this Shereen Bhan spoke to Gopal Srinivasan, Chairman of TVS Capital Funds; Sudhir Sethi, Chairman of Chiratae Ventures and TV Mohandas Pai, Chairman of Aarin Capital.

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