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BlackSoil operates as an NBFC funded by permanent family office capital
“So, we are at NBFC, ah, unlike other venture debt funds, they have to raise money from multiple LPs and then return the capital at the end of the fund, which could be ranging from five, seven years to 10 years. We don't have that kind of, ah, sort of challenge…”
Co-investing venture debt alongside equity rounds is becoming crowded and competitive
“That space we feel is a little bit crowded and getting competitive.”
Startups should fund assets with debt and marketing burn with equity
“We started positioning ourselves on that the dead side to become your working capital partner, and use the money for creation of assets, whether that is business assets, KPEC assets, or even your working capital, and you use your equity money for burn, and you…”
BlackSoil deployed over ₹460 crore across 45 startup deals by 2020
“We have done almost 45 deals more than 400 and sixty-odd crores we have deployed.”
Startup fundraising cycles are lengthening, requiring founders to secure longer runways
“Fundraising in the last few years is taking only longer. It's not taking shorter, right? Unless there are some of the larger unicorn kind of companies different, but for some of the other, most of the largest startup companies, it's requires enough capital in …”
BlackSoil's venture debt interest rates range between 14% and 18%
“Our interest rates range between, ah, 14 to 18%.”
BlackSoil's average venture debt loan tenor ranges between 24 and 36 months
“Second is our loan tenor can range and we have done transactions as short as four months also, ah, at one off and we have done transaction as one off as five years also. But if you look at average tenor it will be between like 24 to 36 months.”
BlackSoil gives startups a three to six-month principal repayment moratorium
“Generally it can range from a average duration of principle moratorium that we give is three to six months and post that on an EMI basis on a monthly basis we start getting a principle back.”
BlackSoil disbursed ₹450 crore and recovered ₹250 crore in principal
“In venture debt space itself, though we have given four 50 crores to date, we have already got more than 250 crores already back. In terms of, you know, repayments on the principal side.”
Venture debt transaction IRRs range from 16% to 21% plus warrants
“The IRR on those transactions is much higher because you also have fees etc on it and your principal also starts coming back. So the IRR can range from 16% to 21% plus in some cases you will get warrants.”
BlackSoil's NBFC assets under management stand at 400 crore rupees
“Right now our book, our assets under management at our NBFC level is 400 crores. 202 150 crores is equity side, one 50 crores is on the debt side.”
BlackSoil holds equity warrants in 15 to 20 of its portfolio companies
“Ah, I think around 15, 15 to 20 transactions.”
Venture debt is 12-15% of US VC market versus 5-6% in India
“I think US it's already like a 12 to 15% of the VC market size. In India that will be like almost five to six percent only so we have a big headway on that side itself in terms of the expansion of the market”
BlackSoil's average venture debt ticket size is 10 to 15 crore rupees
“So we do as small as one crore and we have gone up to like even 30 crores. And then like, for example, for your rooms, you end up to 40 crores also but that was like one off, but generally for us average ticket size would be 10 to 15 crores.”