Inflection Point Ventures (IPV), a key player in India's angel investment community, announced it had completed 14 exits in 2023, which resulted in an Internal Rate of Return (IRR) of 61% for its investors, according to the company.
This achievement is significant, considering the challenging market conditions that have prevailed. IPV attributes its success to a strategic approach that involves close collaboration with startup founders and innovative investment initiatives.
Among the notable exits was a full exit from a project referred to as Project Light, which IPV claims delivered an impressive 217% IRR (~40x month-over-month). In addition to three full exits, IPV also reported partial exits from 11 startups over the year.
These exits involved investments from more than 1,000 individuals and varied across different sectors, with IRRs ranging from 20% to 97%. The average holding period for these investments was cited to be between 1.5 and 2 years.
IPV also announced partial exits from startups like Oorjaa, Devnagri, Aerem, and Ishitva as some of the high performers, which contributed to an average IRR of 80%.
Vinay Bansal, Founder & CEO of Inflection Point Ventures, in a statement, emphasised the company's resilience and adaptability despite the “ongoing funding winter,” asserting, “Once again, IPV has emerged as the most active angel investing platform in India. With its sharp investment strategy and belief in innovative sustainable startups, IPV will continue to evaluate high potential startups in 2024.”
IPV's strategy for achieving these outcomes involved not just financial investments but also providing post-investment support through initiatives like the LetsGrow program. This program, according to IPV, is designed to foster partnerships between founders and investors, offering access to global business networks, CXO expertise, and technological insights to support startups through challenging times.
The company highlighted a successful M&A arrangement between portfolio companies Sportido and Hudle as an example of the program's success in creating value for both founders and investors.
Ankur Mittal, co-founder of IPV, stressed the importance of their investment philosophy, saying, “At IPV, we have always believed in investing in great founders at reasonable valuations. This eventually results in successful exits for our investors. We are a big believer in helping our founders scale up by leveraging our rich network.”
Despite the acknowledged high-risk nature of startup investing, IPV claims its portfolio has shown remarkable resilience. The company states that, out of a portfolio of 200, only 10 startups failed to return capital to its investors, suggesting a success rate that challenges industry norms.
Looking forward, IPV plans to continue its active investment strategy into 2024, supported by the launch of the IPV Ideaschool accelerator program. According to the company, this initiative aims to empower startups to scale rapidly by providing strategic guidance from IPV's extensive network.
In 2023, IPV evaluated over 7,000 startups and funded 56 deals, including 10 uprounds. The company's member base has grown to over 12,000 individuals across more than 46 countries. IPV emphasises its commitment to democratising startup investments, with minimal entry requirements designed to encourage broader investor participation.
