E4: Pranav Pai (Founding Partner, 3one4 Capital)

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Pranav Pai is the Founding Partner at 3one4 Capital, an early-stage VC firm based in Bangalore focused on investing in select market categories such as D2C, Media & Content, Fintech, Enterprise Automation and Deep Tech. Some of their portfolio companies include YourStory, Tracxn, DarwinBox, FairCent, MagicCrate among many others.

Pranav is deeply involved with the startup ecosystem in India and he leads 3one4 Capital’s partnerships and co-investments in the San Francisco Bay-Area as well. Through the fund, he has invested in over 50 companies in India and the US, and works closely with a funding ecosystem of over 20 different investment vehicles.

Previously, he was the Sr. Product Manager at EdCast, an ed-tech startup in the Bay Area. He graduated with a Master's in Electrical Engineering from Stanford University in 2013. Pranav serves on the board of several startups and also volunteers on the advisory boards and steering committees of non-profits that work in areas he is passionate about.

You can follow Pranav on Twitter – @pai_dpiper. While you’re at it you may also follow our host, Akash Bhat - @bhatvakash.

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Glossary of terms you will encounter in this episode:

1. NBFC – Non-Banking Financial Companies.

2. Follow-on Funding: Follow-on funding is a subsequent investment made by an investor who has made a previous investment in a startup.

3. Pro-rata: Pro-rata clause in an investment agreement which gives an investor a right (but not the obligation) to participate in one or more future financing rounds to maintain their percentage stake in the company.

4. Anti-portfolio: Anti-portfolio are some of the great investments where you had the opportunity to participate but missed for one reason or many.

5. Thematic Investing: Thematic investing is a form of investment which aims to identify macro-level trends, and the underlying investments that stand to benefit from the materialisation of those trends.

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In this episode, you’ll learn about:

1. The motivation behind getting started in VC

2. Why 3one4 Capital invests 50-80% into their own fund

3. Pranav’s take on investment trends, thesis development and parachute VCs

4. How 3one4 Capital looks at collaborating with other VCs and why India is becoming a deeper venture market today

5. How Pranav and his team identify great startups and the metrics they look for

6. Geographies in India that are most exciting at the moment from an investment lens

7. His anti-portfolio or in other words, the companies he ended up passing on…you do not want to miss this part!!

8. One thing that changed the way the world looks at India and Indian startups

9. How B2B startups are changing the game for the Indian ecosystem

10. His tips for fund-raising