Pearl Uppal, former CEO and Co-Founder Fashionandyou.com and Gaurav Kachru, former CEO and co-founder of dealsandyou.com joined hands to launch 5ideas.in, aimed at fueling the tech start-up ecosystem in India. As the first initiative under the 5ideas brand, they have launched the 5ideas start-up Superfuel Fund, which is the first seed fund cum accelerator program in India for early stage digital businesses.
Thestart-up Superfuel concept is based on investing abalanced combination of financial capital, human capital and social capital. "In the early stages of venture capital funded businesses, the venture is more important than the capital. The business often has significant challenges on the human capital (people, experience & expertise) and social capital (business networks, ability to source talent) critical to take it to the next level," said Uppal.
Uppal added that they would address these gaps by working with the entrepreneurs and supporting their operations in addition to financial capital creating the formula for a growth superfuel.
5ideas will work with only upto five start-ups at a time. The Superfuel fund has already opened applications for their first batch of investments. 5ideas aims to shortlist their first batch of start-ups by end of December 2012 and initiate their program by end of January 2013. Interested high potential start-ups looking to get the Superfuel boost, can apply by writing to applications@5ideas.in.
Kachru explained that during the first 6 months they would work as close operating partners who have experience in scaling businesses and can help them avoid the pitfalls a typical first time entrepreneur may face. In the next 6 months, they would assist in accelerating the business and helping raise capital. He added that they would work collaboratively with start-up accelerators on one hand and the institutional venture capital players on the other.
The Superfuel Fund will invest upto Rs 2.5 crore in selected start-ups, as well as collaborate as operating partners with the start-up teams for a period of 6 months to a year. In this year long collaboration program, 5ideas will also provide access to experienced mentors and industry connections that will help accelerate their commercial growth.
5ideas Superfuel fund is targeting to raise about Rs 52 crore ($10 million), of which a part has already been raised from domestic investors. The company is ready with funds and teams to start investing by January, next year.
Pearl Uppal brings with her 13 years experience of building start-ups and high growth businesses in the Internet Industry across media and commerce.