3one4 Capital - Fund II
Transformative Capital to #RaiseTheBar
We are very happy to share that we have successfully closed and launched 3one4 Capital Fund II with a corpus of INR 250 Cr.
With this new corpus, we will enhance our deep involvement model across the fund’s investment domains and work more closely with our founding teams to launch new and important value propositions at scale. The fund will continue to focus on the early stage, with cheque sizes between USD 250k to USD 2 Mn and a high reserve ratio for follow-on funding.
3one4 Capital Fund I was launched early in 2016 with a corpus of INR 100 Cr. Since then, the fund has built a deep portfolio across its investment focus areas spanning 40+ companies. Having built a robust pipeline, developed a proprietary software stack to manage end-to-end processes from dealflow to portfolio management and exit simulations, and finessed a deep involvement model with multiple founding teams, Fund II was positioned as a natural evolution of the model at scale.
Our Investors
Fund II has a fantastic set of new LPs joining us as we scale our deep involvement model up in the early stage. We are very grateful to have this opportunity to work with the leaders we grew up respecting and learning from. From institutions and corporations to founders’ family offices and professional fund managers, we have an excellent and intellectually-diverse set of minds who bring unparalleled advantages to the fund and its portfolio companies.
The investors span multiple geographies and have deep interests in 3one4 and its portfolio. We are immensely fortunate to have them help us study new challenges and opportunities in our investment domains, and then work closely with us across multiple dimensions to build dominant companies that solve these challenges.
For a sample of our investors, see here and here.
Our Investment Areas
3one4 Capital spends most of its bandwidth researching and deepening its awareness of contexts in these six primary domains. While we definitely challenge ourselves to look at new models beyond these domains, such as consumer brands pursuing 10x better products or experiences, our investment decisions are force-filtered by our ability to help a company beyond a simple capital infusion.
1. ENTERPRISE INTELLIGENCE & AUTOMATION
New frameworks and automated workflows that drive better decision-making and improve productivity across multiple focus areas.
2. MEDIA & CONTENT DEVELOPMENT
Multi-format & multi-lingual content that can exploit new distribution strategies to serve rapidly evolving consumption behaviours.
3. FINANCIAL TECHNOLOGIES
Helping a new generation earn, spend, save, and multiply smarter with highly accessible and multi-modal services.
4. AMBIENT INTELLIGENCE
Leveling-up conventional practice in farming, supply chain, construction, and manufacturing through data-driven routines and technology-laced playbooks on the edge.
5. EDUCATION TECHNOLOGIES
Platforms and technology-enabled services to prepare us all for the jobs of the future by mapping education to outcomes.
6. HEALTH
Core innovation to augment research and the development of products and services that can elongate health spans and solve species-level challenges.
For more on our portfolio, see here.
How We Work
We believe that transformative capital is informed, networked, and constantly adapting to work with the innovators disrupting large markets. It is a critical parameter in a long list of features that combine to realize exponential influence and disproportionate gains.
At 3one4, we believe founders deserve nothing less than transformative.
The inflection points at which truly game-changing technologies need capital infusions have moved earlier into the funding spectrum. This paradigm shift has demanded that funds look at early-stage investing with a new lens, and that investors bring more to the table than bulk capital. Through a deep involvement strategy, we are committed to staying biased towards action and pulling the best resources together to help our founders deliver audacious results.
A Platform for Market Leadership
Businesses that achieve and maintain market leadership combine deep domain expertise, sustainable competitive advantages, and uncompromising customer experiences to build a gravity well around themselves. The biggest successes are accretive, dominating, and built upon compounding value extraction. This is what we’re working with our founders to optimize for.
By “platformizing” the insights from our journey building and helping scale several market leaders, we aim to infuse the strongest utilities at the right moments into the growth of our companies. Our network of highly focused, self-directed, and purpose-driven founders, mentors, domain experts, and team members work together to mesh these learnings into a solid reference framework that serves as the grounding while our companies are inciting tectonic shifts.
Quotes From Our Founders
Link: http://3one4capital.com/testimonials/
Licious — Abhay Hanjura
“3one4 Capital invested in Licious when we were just an idea, and they are now our first port of call for everything from strategic refinement to managing intricate decisions. Their unflinching belief in entrepreneurs through the vacillations of a growing business has demonstrated their commitment to keeping the founders’ interests at the forefront of every decision they make. The team at 3one4 doesn’t engage with founders through a myopic perspective but with a firm view of making the business successful and self-sustaining in every aspect. This rare and unmatched value system helps forge a high engagement model and very valuable long-term relationships. We have benefited immensely as a company throughout our journey with them from an idea stage to one of India’s most loved gourmet food brands.”
SV.CO — Sanjay Vijaykumar
“Pranav and Siddarth at 3one4 Capital are the rare real “entrepreneurs” in the Indian venture capital industry. Possessing great clarity of thought and a grounded perspective of the future, Pranav and Siddarth make quick decisions, be it in business or governance. This, in turn, helps us founders think clearly as we envision and execute to build new futures that don’t exist today. Once you are part of the 3one4 network, an excellent team is available to support you in recruitment, key business development, introductions to future investors, product development, and financial governance — this helps extend valuable bandwidth for startup teams that are racing to do near impossible tasks in a finite time-frame.”
YourStory — Shradha Sharma
“3one4 Capital has been a collaborative and trusted partner for YourStory. We have benefited immensely from their involvement in advising us on our growth and yet providing us sufficient headroom to chalk out our path. The team has demonstrated great sensitivity and appreciation of partnering with and supporting young entrepreneurs. Mr Mohandas Pai has especially been very helpful and generous in sharing his advice and helping us, and he is a wizard with numbers. Every meeting with him has made us better. I look forward to our continued partnership with this young, nimble, and highly approachable team.”
DarwinBox — Jayant Paleti
“As a founder, working with Pranav, Siddarth, and the 3one4 team has been an incredible experience. They are an extremely hands-on and accessible team. Working with them truly feels like a partnership and they have continued to support us on multiple cross-functional initiatives be it sales, marketing, recruitment, or tech. One thing that truly stands out is that they are probably amongst the few Indian VC teams that truly understand tech not just from a macro standpoint but at a highly granular level. Their inputs to our scale-up have been invaluable.”
Bugworks — Dr. Anand Anandkumar
“As a cross-border startup in deep science, we are building in an area that has very few financial backers from India. In this context, for us to get excellent support from such a young investment team, has been an outstanding experience. 3one4 has taken a very refreshing attitude to investing in the early stage. This team never interferes in the daily operations, while providing us with excellent guidance and support on matters such as managing burn rates, setting up scenarios and models, global PR, and connects to a spectrum of international investors. It fascinates me that they have so much interest in the work we do and are our voice in many forums which attract high-quality investors and prospective partners. I do not doubt that 3one4 will become a premier cross-border investment firm and help create many great global companies. A no-nonsense, non-pretentious, highly efficient, caring, and involved investor!”
i2e1 — Satyam Darmora
“If you have multiple term sheets, including one from 3one4, then just sign up with 3one4. Period. Two specific reasons amongst many others:
1. You not only get money but also access to a very strong network which will help your business in real quantifiable terms. We benefited at least INR 1 crore in various forms due to our association with 3one4.
2. There are very few investors, to our knowledge, in the Indian ecosystem who work with such fine balance of working closely with their companies and supporting them while still keeping them empowered and independent. 3one4 brings along a very smart, professional, and proactive team which is there to help you on various dimensions ranging from finance, strategy, and planning.”
Talk To Us
If you’re a founder and you think we can help you beyond just a capital infusion, reach out to us through here.
If you lead or work at a firm in a domain that can add value to our portfolio companies, such as design, legal, media and PR, and so on, we’d love to hear from you as well.
Our sincerest gratitude goes out to our mentors, partners, collaborators, and co-investors. Your support has kept us focused on transforming our ideas to action.
With definite optimism,
The 3one4 Capital Team
