Silver Needle Ventures (Empowering startups to find and deliver value in 2024 )

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Funding, indian startups, Internet, Investments, services, Startups, startups in india, VC Firm, VC Network Apr 4, 2024 0

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Silver Needle is a Venture capitalist firm that believes in delivering value to visionary Startups.

What is Silverneedle Ventures?

Silver Needle Ventures, born out of a successful stint in early-stage startup investments in 2015, emerged formally in 2022.

Founded under the leadership of a seasoned investor, Mr.Ajay Jain, the venture, categorized as a category one angel fund, positions itself as a hands-on supporter of startups post-early traction.

Their vision is clear-  to invest in early-stage, post-traction ventures.

This means they invest in companies that have already achieved some initial success, such as generating early revenue or piloting their product with large institutions rather than pure ideas.

The firm prides itself on being closely knit with its portfolio founders, fostering a relationship that goes beyond capital investment.

Startup Silver Needle Ventures
Website silverneedle.vc
Founded 2022
Headquarters Hyderabad, India
Services Investment
Revenue Model Funding early-stage, post-traction startups.

From Vision to Venture

The inspiration behind Silver Needle Ventures stems from a history of individual investments that yielded a remarkable 6X return on capital.

A decision to formalize this success resulted in the birth of Silverneedle Ventures.

The founder, who has experienced since 2015, sought to expand his existing efforts after achieving success with over 20 early-stage companies and maintaining unrealized gains.

Mr. Jain’s involvement with a startup hub provided insights into the challenges and needs of early-stage startups, leading to a desire to play a more integral role in their growth journey and they decided to launch Silverneedle Ventures in 2022 formally.

Quick Overview of Silverneedle

Silverneedle flyer

Transformative Growth

The growth journey from the initial stages in 2015, under the umbrella of X-seed Partners, to the formal launch of Silverneedle Ventures in 2022 reflects a shift in investment focus from very early-stage to post-early traction.

While external economic conditions have impacted overall growth, the portfolio’s performance remains positive, with optimism for the upcoming year.

Criteria for Silverneedle’s Funding

Silver Needle Ventures seeks startups with post-early traction, preferably with existing revenues or ongoing pilots. The emphasis is on supporting founders who see value in the firm’s involvement beyond just financial backing.

The eligibility criteria reflect a preference for startups in diverse sectors, ensuring a balanced portfolio that includes both deeper technologies and broader markets.

Silverneedle’s Investment Focus

Silver Needle Ventures looks for startups with relatable stories, a clear understanding of the market, and a convincing reason behind their venture.

The firm values subject matter expertise, emphasizing that successful startups go beyond replicating Western ideas and require a genuine connection to the business they’re entering.

Passion and the ability to navigate the long are crucial factors considered during the selection process.

This early phase investor prioritizes co-investment opportunities, collaborating with other venture capital firms to spread risk and gain diverse perspectives.

The vast portfolio has 30-40%  deeper technologies such as AI and space tech, a large market segment that includes a big chunk of finance and healthcare, and also the industries where deeper technologies are enabling solutions.

Advice to founders

For new founders, Managing Partner and Founder Ajay Jain emphasises the importance of understanding the business side of their venture. This includes appreciating the sales and marketing aspects, creating thorough business plans, and grasping legal compliance requirements.

The advice extends to founders playing a finance role, understanding the financial health of their startup, and recognizing areas of strength and improvement.

Silverneedle Team Dynamics

Building the Silverneedle Ventures team was a relatively smooth process. The existing team, including a long-time partner and a well-connected member in the US, formed a solid foundation.

A few challenges were faced during the hiring process, which took six months to finalize finding the right individuals who share the firm’s vision and values. The team’s strength lies in its dedication to startup development and strong support from sponsors, investment committees, and investors.

Silverneedle screenshot

Ticket Size Strategy

This post-traction backer typically invests in startups with ticket sizes ranging from two to four crores initially.

While deals of eight to ten crores have been undertaken, the average ticket size aligns with the firm’s risk appetite. Follow-on investments in successful startups are considered, with an additional eight to ten crores as a part of their growth strategy.

Collaboration in Competition

The horizontal portfolio managers actively participate in co-investments, collaborating with other firms like Blume, 100 XVC, Pentathlon, or JSW.

This cooperative approach is driven by a belief that co-investments enhance confidence in deals, showcasing a willingness to engage with and complement other players in the industry.

Business Expansion Plans

The category one angel fund investor envisions becoming a recognized brand with a series of funds.

The next fund is anticipated in 2025, expected to be larger and potentially more globally focused. The firm aims to continue its growth, aligning with areas of belief and expanding its presence in the global venture capital scene.

SWOT Analysis

Strengths:

Experienced and passionate founder with a successful track record.

Strong focus on supporting and mentoring founders beyond just funding.

Flexible approach to investment sectors.

Weaknesses:

A relatively new firm with a small team.

Limited initial investment size compared to larger firms.

Silverneedle swot

Opportunities:

Growing Indian startup ecosystem with increasing demand for funding.

Potential to expand into new sectors or verticals.

Threats:

Increasing competition from other venture capital firms.

Complex and evolving regulatory landscape.

Partners’ Background

Ajay Jain is the founder and Managing Partner at this investment firm. He is the mastermind and brings his invaluable experience and expertise to mark the growth at Silverneedle Venture.

Deepesh Agarwal is the other partner and has been associated with Mr. Jain since their college times and they have been together at X-seed, their previous investment firm too.

Sanjay Rastogi is the third partner and is an ex-employee of a billion-dollar company and brings his invaluable experience to contribute to the firm’s growth.

Abhishek Balendran is the investment partner and shares his true vision and adds value to the company.

Prashant Pandey is the venture partner and holds vast experience in Banking, Advertising, FMCG & Media.

Silverneedle Sector-Agnostic Philosophy

While open to various sectors, this early-stage investor maintains a sector-agnostic approach, aiming to play a horizontal game in the startup investment landscape.

However, the portfolio is managed to maintain a balance, with around 40% dedicated to deeper technologies and the remainder exploring larger market segments such as finance, health, and B2B SaaS.

More

What sets Silver Needle Ventures apart from other venture capital firms?

Silver Needle Ventures distinguishes itself through its hands-on approach, emphasis on post-early traction investments, and a balanced portfolio strategy. The firm’s commitment to supporting founders beyond financial backing and its collaborative approach with other venture capital firms contribute to its unique position in the industry.

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