We often hear about the “power law” in VC, where only one out of 20 startups in a vintage delivers outsized returns. But is India truly finding its “1 in 20”? And how is the ecosystem performing in terms of returning money to LPs?
In this insightful conversation, Deepsekhar Choudhury, Associate Editor, Outlook Business, sits down with Rahul Chowdhri, Co-founder of Stellaris Venture Partners, to dive deep into the challenges and opportunities that shape the Indian VC landscape.
From how domestic funds are raised in a country without large endowments or pension money flowing into venture capital, to how family offices are beginning to play the game directly, the fundraising journey for VCs in India is unlike anywhere else in the world.
Mr Chowdhri further sheds light on how his company, Stellaris Venture Partners, is now raising multi-hundred-million-dollar funds, a solid sign that Indian VC may finally be shedding its overdependence on foreign investors. But what does this mean for the big picture of India’s startup ecosystem? No conversation about the future would be complete without AI.
While much of the action seems concentrated in Silicon Valley, how are Indian VCs approaching frontier technologies? Are we losing ground due to limited capital, and do we need billion-dollar domestic funds to compete globally in areas like chips, EV batteries, drones, and deeptech?
Beyond capital and technology, governance and trust also play a role. With Indian term sheets often more complex than those in the Valley, is there a trust deficit between VCs and founders? And how do investors navigate regulatory uncertainty in sectors like gaming, crypto, e-commerce, and quick commerce, especially when their bets are made with a 10-year horizon in mind?
This is not just a conversation about venture capital. It’s about India’s place in the global startup map, the policies shaping our future, and the delicate balance between ambition, trust, and resilience that defines the journey.
