Blume Ventures co-founder Karthik Reddy reflects on portfolio scale and exit milestones across the firm's early portfolio companies.
Insight
Reddy: India backs me-too copycats instead of novel behavior creation
“And it's because of new behavior creation that incredibly long, large long-term value gets created in the world. And India is almost the antithesis of it. All the large-term value you're trying to create is in Me Too's. Right? By pumping more money and trying …”
What-if
Reddy: Early Indian startups wouldn't exist without Tiger Global's Lee Fixel
“Because, you know, if, when Lee used to cut them from tiger, He's literally the only person in the world. If you think about it, you can say no, no, if Lee didn't, somebody else would have. I say bullshit. I say basically if Lee didn't, it wouldn't have happen…”
Insight
Reddy: Indian VC funds must target 5x returns to offset slower exits
“We don't want to be shooting for less than five X funds. In India, things take time, so I have to adjust for a time factor that things will take two years more, so that hits your IRR. We're measured by IRR. And so, don't want to take an easy way out and say, t…”
Insight
Reddy: Consensus themes are dangerous for seed funds seeking Series A
“So the more common themes that get picked are dangerous in some sense for a small player like us, because then you're always under headwinds, because there's a bigger guy who says, you know, I've already made a bet in the space or adjacent space. I won't fund …”
Insight
Reddy: Indian VCs will make the most money backing edge cases, not copycats
“Those risky bets are the ones which are going to make the most money. Like my LPs tell me, historically, you were shying away from that. It's probably true. It was basically, you didn't know what's going to work, what's going to take off, so you're hedging, ma…”
Prediction Held up
Reddy: India will produce a dozen billion-dollar B2B companies by 2025
“I think we'll have a dozen of them by 20, 25.”