Cloud Capital: 2021 Rewind

  • Community as a moat: community leveraged as a propeller for business; ie-threedots, Avalon Scenes, FrontRow, etc
  • Productivity: B2B or B2C products that boost productivity for its customers; ie- Chronicle, Airmeet, ByteLearn, Omnify, SuperBeings, etc
  • Inclusion: unlocking access with technology; ie-Mahila Money, OneCode, Rupifi, Redwing Labs, etc
  • Pick-and-shovel plays: underlying technology for emerging businesses; ie- DataKrew, Chace, Kitchens Centre, Lysto, etc

Unwrapping our 2021 activity:

  • Invested $2.4M in 2021 (1.4x of 2020 deployment)
  • Backed 20 companies across 22 rounds
  • Fresh investments (18): 4 Pre-seed + 12 Seed + 2 Series A
    Disclosed investments: Datakrew (w/ Beenext), ByteLearn (w/ Chiratae, Goodwater Capital), kWh Bikes (w/ angels), Avalon Scenes, OneCode (w/ Sequoia Surge, Nexus Ventures, etc), FrontRow (w/ Eight Roads, Elevation Capital, Lightspeed Venture Partners), Lysto (w/ Beenext, Polygon founders, etc)
  • Our follow-on investments (4): 1 Seed + 2 Pre-Series A + 1 Series B
    Disclosed investments: Rupifi (w/ Quona Capital, Binny Bansal), ByteLearn (w/ Goodwater Capital, Earlsfield Capital, etc)
  • Acquisition channels: 44% referrals, 28% outbound, and 28% inbound

Cloud Capital in a snapshot:

  • Top sectors of investment: Fintech, SaaS, EdTech, and Health amongst others
  • 27 companies in the portfolio with a total market cap of $400M+
  • 41% of investments in rounds without any institutional investor
  • 6 companies have raised follow-on capital from the likes of Sequoia Capital, Accel Partners, General Catalyst, Quona Capital, Redpoint Ventures, etc (over the last 24 months)
  • Participated in 66% of follow-on rounds within the portfolio
  • 43% of the founders are repeat entrepreneurs
  • Portfolio split of 52% B2B + 48% B2C
  • Median cheque size of ~$130k
  • Max # of investments in a portfolio company so far (doubling down on our conviction): 3
  • 1 complete exit: Fitso acquired by Zomato

Learnings & Experiences:

  • Play long-term games with long-term people. As Cloud Cap, we can proudly say that there are investments where we are the first to commit without any ‘lead’ or an institutional signal in the round. Moving fast and throwing our absolute weight behind our conviction is an investor trait that high-integrity founders truly value. Both investors and founders benefit from such a relationship that is built on pure conviction and mutual admiration.
  • Earning the right to invest: With an abundance of capital, both domestic and international, it’s not a cakewalk to invest in competitive rounds. You have to establish your value add and should earn your right to. We have helped startups construct their rounds, made cross-border investor connections, made customer and talent introductions, and helped close high-quality candidates. In some cases, we have done all of the above without investing a single dollar, only to eventually get the founders to give us the right to invest.

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