TURNING IDEAS TO GOLD

Perspectives on for Indian Family Offices Summary

10K 140+ ~20% $30Bn Expected number of ultra- Formalised Family Offices in Portfolio allocation towards Indian Family Offices are high net worth individuals India that preserve, enhance, Alternative assets (which estimated to contribute 30% of (net-worth > US$ 30M) in and transition UHNI includes PE/VC) by Indian the estimated $100Bn to be India by 2024 Family Offices raised by Indian startups by 2025

55K 485 bps 9 12 Number of start-ups launched Higher IRR generated by VC Levers through which VC Crucial checks across team in India. Home to 56 unicorns, and PE funds raised during funds generate value for their skills, fund reputation, investment India has added 14 new periods of economic crises GPs – including relationships, strategy, funding capability and unicorns by May 2021 already relative to the average VC/PE expertise and processes past returns generated while returns over the period 1995- selecting a fund GP 2016

© 256 Network © Praxis Global Alliance | 1 A new generation of Indians is growing their wealth

UHNIs in India expected to have ~US$ 700B wealth by 2024, India expected to have ~10K UHNIs by 2024, ~2X of 2019 figures ~1.6X of 2019

No of UHNIs in India UHNI wealth in India 2014-2024P US$ B, 2019-2024P

707 10,354

CAGR CAGR 10% 12% 440 5,996

CAGR 3,061 14%

2014 2019 2024P 2019 2024P

Notes(s): UHNIs refers to individuals with net worth > US$ 30M, CAGR for UHNI wealth estimated on the basis of past trends from 2013-18 Source(s): The Wealth Report 2020 Knight Frank, Praxis analysis © 256 Network © Praxis Global Alliance | 2 UHNIs from diverse backgrounds are setting up Family Offices

• Family Offices are full-service private services that serve just one or a small number of ultra-high-net-worth families • There are 140+ Family Offices catering to Indian UHNIs, 70+ structured and 70+ unstructured Family Offices • UHNIs are also investing in Indian startup space through their Family Offices

Indian UHNIs setting up Family Offices

1 2 3 4 Business Leaders Indian Celebrities NRIs Digital Entrepreneurs

Several Indian business leaders Media and sports celebrities Several Indian business families Tech and digital entrepreneurs have set-up Family Offices like: have setup Family Offices and based outside India have setup have set up Family Offices for invested in many tech startups Family Offices for investments: wealth preservation: • Azim Premji (Wipro): Premji like: Invest • Abhinav Jhunjhunwala: AJ • Ritesh Agarwal (Oyo): Aroa • Rishabh Mariwala (Marico): • Yuvraj Singh: YouWeCan Capital (Singapore) Ventures Sharrp Ventures ventures • Satveer Singh Thakral: SGAN • Kunal Bahl (Snapdeal): Titan • Ratan Tata (Tata Group): RNT • Priyanka Chopra Jonas: (Singapore) Capital Associates Bumble (Direct) • Satpal Khattar: Khattar • Vijay S Sharma (Paytm): VSS • RK Damani (Damani Group): • Akshay Kumar and Madhuri Family Holdings (Singapore) Holdings and VSS Investco Brightstar Investments Dixit Nene: GoQii (Direct) • S. Ramakrishnan: Transworld • Sachin Bansal (Flipkart): Navi • Sachin Tendulkar: Smarton Group Family Office (UAE) • Rajul Garg (Pine Labs): Leo (Direct) Capital

Source: Primary Research © 256 Network © Praxis Global Alliance | 3 Traditional businesses pioneered structured wealth management…

1 Business Leaders

Arun Sarin BrightStar Family Office Investments Ltd (Manipal group) (BSE directors) (ex-CEO,Vodafone) (RK Damani, Dmart)

Bryanston Dilip Shanghvi Family Office (Pidilite group) (Narayan Murthy) (Serum Institute ) (Nandan Nilekani) (Dabur) (Sunpharma) Lahari Single Family Office Family (Uday Kotak) (Lahari Music) Offices Mansukhani Mistry Ventures Narotam Sekhsaria Family Office Family Office (Cyrus Mistry) (SAR Group) (Hiranandani)

Pratithi (Kris G, Infosys) (Wipro) (Patni Computers) (Camlin group) (Rakesh Jhunjhunwala) (Tata Group) (Marico)

Telama Investments Family Office (S.D. Shibulal) (Shiv Khemka)

Multi Family Offices

Note(s): All Family Office names are arranged in alphabetical order, In addition to setting up single Family Offices, multiple business leaders manage their wealth through multi-Family Offices that cater to multiple families © 256 Network © Praxis Global Alliance | 4 Source: Primary Research …with the newly wealthy following in their stead

2 Indian Celebrities 3 NRIs 4 Digital Entrepreneurs

Aishwarya Rai Akshay * Kumar* Bachchan (Actor) (Actor) (Actor) Ritesh Aggarwal (OYO) Abhinav Jhunjhunwala Abhishek Sharma (Singapore) (Dubai) Arjun Ayushmann Hrithik Rajul Garg (Pine Labs) Kapoor* Khurrana* Roshan (Actor) (Actor) (Actor) Divesh Makan Sat Pal Khattar (USA) (Singapore) John Deepika Kapil Dev Abraham* Padukone Sachin Bansal (Flipkart) (Actor) (Cricketer) (Actor) Sanjay Nayar & Falguni Kumar Neelesh Bhatnagar Nayar Family Office Virat Priyanka (Nykaa founder & KKR MD) Anushka Chopra (Singapore) (UAE) Kohli Sharma (Cricketer) Jonas* (Actor) (Actor) Kunal Bahl (Snapdeal) A R Sonam MS Dhoni Satveer Singh Thakral Aneel Ranadive Rahman Kapoor (Cricketer) (Singer) (Actor) (Singapore) (USA) Ronnie Screwvala (Upgrad)

Sachin Sukhbir Yuvraj VSS Holdings & VSS Investco Tendulkar Singh* Singh S. Ramakrishnan Mahendra Vora (Cricketer) (Cricketer) Vijay Shekhar Sharma (Paytm) (Singer) (UAE) (USA)

Note(s): * indicates individuals who have made multiple investments in Indian start-ups but do not have a formal Family Office Source: Primary Research © 256 Network © Praxis Global Alliance | 5 Family Offices with mature portfolios have investments in startups aplenty

Family Offices have been participating in 50+ deals yearly Tech investments made by notable Family Offices in India

# deals participated # invested Family Office Portfolio companies 2015-20 firms

88 35

74 72 69 67 31

53

30

30

13

2015 2016 2017 2018 2019 2020 Source(s): Company website. PGA Labs deal database, Praxis analysis © 256 Network © Praxis Global Alliance | 6 Early investors in startups have reaped handsome returns

Return multiple

Reliance Industries Market Cap: US$ 177B Valuation: US$30B* Valuation: US$ 15B Jio Platform valuation: US$ 67B Total funding: US$ 7B Total funding: US$ 3.12B Total funding: US$ 20B Total investors: 30 Total investors: 43 Jio is currently valued at almost 38% of RIL market cap Apr 22, 2020 US$ 5.7B: Facebook 750x 16.7x 6.6x 6.9x 5x May 04 US $750M: Silver Lake Direct investment by a May 08 US$ 1.51B: Vista Equity Partners 2007 Founded 2011 Founded Family Office Series A: US$ 9M May 17 US$ 875M: 2009 Series A: US$ 1M, 2013 Aarin Capital Series B: US$ 25M May 22 US$ 1.5B: KKR 2015 2010 Series B: Undisclosed, Tiger Global Jun 05 US$ 604M: Silver Lake Series C: US$ 20M, Tiger Global, Series C,D,E 2011 2016 Kalpan Group investors Sequoia Capital, IFC, Charles Schwab Jun 05 US$ 1.21B: Mubadala Series D: US$ 150M, Naspers, Iconiq 2012 Series F: US$ 70.7M Capital 2017 Jun 07 US$ 745M: Abu Dhabi Investment Authority Tencent, Lightspeed, Verlinvest 2013 Series E: 360M, Tiger Global, Accel, US$ 850M: L Catteron Jun 13 Naspers Series F,G: 540M Series F, G, H: US$ 1.9B, Baillie Gifford, 2018 2014 General Atlantic, Naspers Jun 18 US$ 1.5B: Public Investment Fund Steadview, Greenoaks, GIC, Naspers Series G: US$ 724M, Qatar Series I, Debt, J: US $830M Jul 03 US$ 254M: Intel 2015-16 2019 Investment authority, The Times Tiger Global, Times Group, Morgan Stanley Group, Tiger Global Jul 12 US$ 100M: Qualcomm Ventures 2017 Series J, Debt: US $4B Series G, H: US$ 655M SoftBank, Tencent, Microsoft 2020 DST Capital, Tiger Global, Bond Jul 15 US$ 4.5B: Google 2018 Acquisition by Walmart: US$ 16B Capital

Note(s): Jio platform valuation taken according to Google’s investment. Industries Market Cap taken as of 25th May 2021 © 256 Network © Praxis Global Alliance | 7 Source(s): Company website, Tracxn, PGA Labs deal database, New Street Research LLC, *Market Estimates A comprehensive thesis for venture capital investing

A. Tech is eating the world C. Strategic benefits

1 Tech firms dominate equity markets Opportunities for Family Offices to 1 explore core business adjacencies India’s tech opportunity is in its 2 private markets 2 Access to innovation & deep tech

3 Access to a digitally empowered India’s startup ecosystem is booming 3 workforce

4 Digital-first solutions create deeper impact for all stakeholders B. High Returns

Alternatives are the x-factor in 1 portfolio construction D. Atmanirbhar Bharat

2 VC outperforms public markets 1 Retaining tech ROI in India

3 Play at the sweet spot of risk & returns 2 Retaining Indian talent in India

Maturing ecosystem has led to more exit 3 Retaining Indian IP in India 4 avenues and stellar returns

© 256 Network © Praxis Global Alliance | 8 VC-funded technology companies dominate public markets globally

Top 5 global companies by Market Cap

2001

US$ 406B US$ 365B US$ 272B US$ 261B US$ 260B CAGR 20% CAGR 21% CAGR 17% CAGR 55% CAGR 28%

2011

US$ 406B US$ 376B US$ 277B US$ 237B US$ 228B CAGR -2% CAGR 39% CAGR 1% CAGR 1% CAGR -2%

2020

US$ 2260 B US$ 1,680 B US$ 1,630 B US$ 1,190 B US$ 778 B CAGR 31% CAGR 27% CAGR 39% CAGR 19% CAGR 21%

Tech companies Non-tech companies

Note(S): Circle sizes represent the market capitalisation for firms, CAGR is calculated for Market Cap for a 5 year period, (Petrochina: 2008-11) © 256 Network © Praxis Global Alliance | 9 Source(s): Pitchbook, Company websites, Kyofin, Macrotrends, Praxis analysis India’s public markets are yet to see participation from its biggest startups

Market-cap of top 15 US tech firms as a % Market-cap of top 15 publicly listed tech firms as % of of US GDP tripled in the last 5 years India’s GDP has barely moved sideways

Sectoral growth has recently been spurred The top 15 tech companies in the 47% by the impact of Covid19. USA grew 6x faster than the overall Several rumored startup IPOs foreseen in economy in the past five years 2021-22.

31%

24% 23%

18% 12.6% 16%

7.8% 7.9% 7.6% 6.8% 6.9%

2015 2016 2017 2018 2019 2020 2015 2016 2017 2018 2019 2020

Source(s): Data as of Dec 2020, Pitchbook, Praxis analysis © 256 Network © Praxis Global Alliance | 10 With startups going public bigger and later…

US tech IPOs valuation at listing and age at IPO (2005-2020)

Median valuation at listing (US$ M) Median age at IPO (years) 20

4,319 18

16 14 13 12.5 14 12 11 11 11 11 11 12 10 10 9.5 9 9 9 2,175 10 8 1,928 8

6 1,129 813 824 812 815 841 686 715 4 560 646 548 307 352 2

0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Number of US tech IPOs 45 48 76 6 14 33 36 40 45 51 38 21 30 39 37 42

Source(s): Jay Ritter IPO database © 256 Network © Praxis Global Alliance | 11 …an investor’s opportunity to ride India’s tech sector growth is largely in the private space

# Public and private tech companies by Market cap / Valuation in India • 250+ Indian startups with valuations 141 over $100M have the potential to go public in India

• The Indian private tech market is close to matching the size of its public tech market 59 46 • Total market cap of public tech companies as a % of India’s GDP is 16 16 10 12.6%, while the valuation of private 4 4 3 3 1 1 tech companies is 10.2% of GDP

US$ 100- US$ 500M-1B US$ 1-5B US$ 5-10B US$ 10-50B US$ 50-100B More than 500M US$ 100B # private tech companies # public tech companies

Source(s): Chiratae Ventures, 3one4 Capital © 256 Network © Praxis Global Alliance | 12 Data as of May 25th, 2021 Which is why India’s private tech landscape is booming

$70 B $11.4B 55K+ 56 150

Funding into Indian Indian unicorns as of India will likely be Startup funding in Total # of Startups startups during 2014 - present, 14 added in home to 150 unicorns 2020 across 792 deals launched in India 2020 2021 already by 2025*

A Robust ecosystem 135+ 300+ 520+ 47% 3 of enablers Unique corporates Active institutional Accelerators and Startup unicorns Cities among top collaborating with investors in 2020 incubators as of have overseas 10 startup cities startups funded 2020 market in Asia – Pacific, between 2015-20 2020

Note(s): Data as at Dec 31, 2020, # of unicorns as of May 25th 2021, Active institutional investors à have invested at least once in 2020 Source(s): NASSCOM, Government portals, Inc42, Tracxn, Startupblink, *3one4 Capital © 256 Network © Praxis Global Alliance | 13 Allocations in Alternatives (like VCs) generate portfolio outperformance

Typical 7-Year Portfolio Performance: 20% portfolio allocation towards Alternatives (incl. VC) yields 30% of total portfolio returns

Alternatives make ~20% of the portfolio of Indian Family Offices Alternatives contribute to 30% of returns of a typical portfolio

Asset allocation of a typical Family Office (%) 7-year avg return contribution by asset type (%)

Gold 2% 6% CAGR Gold 1%

Debt 13% 6% CAGR Real Estate 6%

Alternatives are the Real Estate 15% 4.5% CAGR Debt 7% largest contributors to portfolio outperformance Hybrid* 15% 11% CAGR Hybrid* 15%

Alternatives 20% 17% CAGR Alternatives 30%

Equity 35% 13% CAGR Equity 41%

Source(s): Client Associates estimate based on their client portfolio Hybrid refers to Balanced Funds, which have a blend of public market equity and debt allocations, usually in a 60-40 ratio © 256 Network © Praxis Global Alliance | 14 Long term return expectations are basis historical asset class returns over a rolling 7 year window Despite public equities having had an exceptional run...

Index Returns (x) IRR

S&P CNX Nifty 1.67x 8.22%

SMLCAP 2.10x 12.11% Indian Indices BSE IT 2.27x 13.47%

BSE TECH 1.87x 10.10%

S&P 500 1.79x 9.41%

NYSE Composite 1.21x 2.91% Global Indices Russell 2000 1.28x 3.90%

NASDAQ Composite 2.65x 16.15%

Daily closing prices are considered for a period between Apr 1, 2014 to Sep 30, 2020

Source(s): BSE, Bloomberg, Secondary research © 256 Network © Praxis Global Alliance | 15 …top quartile VC Funds in India outperformed* (FY14-20)

Index Returns (x) IRR

Benchmark* 2.06x 11.72% Cat 1 AIF (INR Funds) Top Quartile 2.51x 18.19%

Benchmark* 1.66x 8.09% Cat 1 AIF (USD Funds) Top Quartile 2.05x 11.68%

Period between Apr 1, 2014 to Sep 30, 2020

“The well performing VC funds beat the public markets consistently over a period of time. The best ones in fact beat the best performing public market indices and those are the ones where you want to park your capital! ”

- Sudhir Sethi | Chiratae Ventures

*Note(s): Private market pooled IRR’s for Benchmark is available between April 1, 2013 and September 30, 2020 © 256 Network © Praxis Global Alliance | 16 Source(s): CRISIL Due to higher risks, private market investments generate higher returns

30 Global private market vs public market returns 2000-2016 is the period %, 2000-2016 under consideration as funds with vintage post 25 24 2016 are yet generate or realise portfolio gains to be comparable to a benchmark 19 20 18 17 17 16 17 15 15 15 14 14 14 Avg. return: 13 13 13 13 15% 12 12 11 11 11 11 11 11 10 10 9 7 8 Avg. return: 7 7 7 10% 6 6 6 5

0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 S&P 500 MPME IRR Private markets Average returns for Average returns for private markets public markets

Note(s): Data as of June 2020. Pooled returns used to calculate IRRs for private markets, mPME or modified public market equivalent used for public markets. Source(s): Cambridge Associates LLP, UBS Family Office report 2019, Praxis analysis © 256 Network © Praxis Global Alliance | 17 Investing in Venture Capital allows Family Offices to balance risk & return

Direct Investment VC Funds PE Funds Public Markets

• High return on successes • High returns on successes • Stable returns through • Public markets tend to have • No capital protection in the • Seasoned teams improve investments at a more lower returns than private event of failure access to and success of mature stage markets Returns investment picks • Seasoned teams improve access to and success of investment picks

• High risk due to absence of • Risk lowered through pooled • Risk lowered through pooled • Market volatility impacts all pooled capital capital capital listed companies irrespective • Low probability of success • Strategic capital allocation & • Lower chances of failure at of performance Risks typically means only 1-2 out staggered deployment the late stage of 10 investments succeed • Delinked from public market • Delinked from public market volatility volatility

• Low ticket size in early stage • Multiple opportunities for • High ticket size investments • High flexibility in amount investments investments at different • Relatively few PE investment invested • Avoidable: Cost of cheque sizes – seed, early, opportunities in India • Transparent costs Cost growth, late stage management team to scout, • Fund managers charge fees • vet, and invest in the right Fund managers charge fees and a carry on profits companies and a carry on profits

Unfavorable Favorable © 256 Network © Praxis Global Alliance | 18 Opportunities for Family Offices to explore core business adjacencies

As Hero Motocorp ramps up its efforts in the EV segment, a stake in Ather energy provides access to technology for the company to improve its offerings EV Segment As co-living spaces gain traction among millennials, Icertis – a digitizing solution for Digital partnering with these Co-living space contract management is used services will enable Lodha transformation by Wipro group to streamline group to increase the yields internal processes on real estate projects

As E-pharmacies become As personal care purchases become increasingly digital, popular, Manipal group can E-commerce for leverage partnership with E-pharmacy Marico can leverage its personal care PharmEasy for expanding its partnership with Nykaa to pharmacy sales serve customers who shop online Shared mobility As vehicle ownership rates plummet and shared mobility gains traction, Mahindra group can leverage its partnership with Zoomcar to expand into B2B sales

Source(s): Secondary Research © 256 Network © Praxis Global Alliance | 19 Atmanirbhar Bharat opportunity: Retaining tech ROI in India

Indians have emerged as the intellectual powerhouse of the world, with 30% of the Fortune 500 companies having Indian CEOs and a third of all new founders in Silicon Valley being Indian or of Indian origin. But the intellectual capital of India is underserved by its economic capital as Indian investors shy away from Indian startups. Yet India has emerged as the third largest startup ecosystem in the world in terms of startups, funding and exits, behind only the US and China – despite the lack of domestic capital participation. India’s rise to become a startup and digital powerhouse is not a possibility, but an inevitability. The only question that remains is the role that Indian capital will play in this once-in-a-lifetime revolution.

India’s domestic investment contribution to start-ups is 26% Global funds have major stakes in Indian start-ups

Fund Country Stakes in Indian unicorns Domestic investment in startups as a ratio of total funding (in %, 2019) • 12.4% in Byju’s • 8.3% in OYO • 6.9% in Zomato India 26% • 48% in OYO • 33.5% in Snapdeal Singapore 26% • 19.6% in Paytm

South Korea 30% • 11.6% in Ola • 5.4% in Zomato Australia 49% • 1.3% in Byju’s • 9.1% in Ola China 57% • 5.6% in Swiggy

Japan 84% • 29.3% in BigBasket • 3% in Snapdeal Source(s): Tracxn, Preqin database, Secondary research, Praxis analysis © 256 Network © Praxis Global Alliance | 20 Atmanirbhar Bharat opportunity: Retaining Indian talent in India

67 1.4B 56 4.2M US Unicorns with Population of Unicorns in Indians in Indian-origin India India* USA founders*

Notable US startups with Indian origin founders

© 256 Network © Praxis Global Alliance | 21 Source(s): 3one4 Capital *Data as of May 25th 2021 (includes Unicorns that got listed in the public markets) Atmanirbhar Bharat opportunity: Retaining Indian IP in India

There are two factors that will result in Indian IP being retained in India – the first is corporates and government encouraging procurement from local start-ups and paying a fair price for their IP, and the second is having Indian investors fund these start-ups. Although there is a lot to be done, I see positive trends on both fronts. Companies domiciled in India with significant IP in our portfolio such as Delhivery, Pando, Sedemac, and Unacademy have benefited from these trends. Public listing of some of the late stage start-ups on the Indian markets in 2021/22 will provide a big impetus as well.

Indian startups incorporated outside India Indian IP filed in other countries

Patents filed by India domiciled 1,338 companies in the US in 2018-19 US Singapore Singapore

Patents filed by Inmobi in 29 Singapore

Singapore Singapore Singapore

Patents filed by Affle India in 14 Singapore and USA

Singapore Singapore Singapore

Source(s): Secondary research, Praxis analysis,analysis Data as of Dec 2020 © 256 Network © Praxis Global Alliance | 22 Tech enabled businesses outperformed traditional businesses

1 2 3

E-grocery OTT Edtech platforms platforms platforms

Gained traction as social distancing requirements Large and growing internet population in Tier-II and Increased engagement as students become made shopping from stores difficult smaller cities consuming vernacular content comfortable with online learning as traditional options become unavailable

84% growth in customer base 16M people created accounts in 30% Increase in time spent on during COVID times Q1 2020 - almost double the new EdTech apps in Q2 2020 signups seen in Q4 2019 Retention rates of 50% against Average time spent on BYJU’S 30-45% earlier platform increased from 70 to 91 mins during Covid

INR 7,000 Cr loss of revenue INR 184 Cr loss of revenue in Q2 2000 students were staying in during COVID leading to sale of 2020 against 48 Cr profit in same Kota for offline coaching during business to Reliance quarter last year covid; pre-covid this number ran in few lakhs

Source(s): Secondary research, Praxis analysis © 256 Network © Praxis Global Alliance | 23 Biggest winners: EdTech, Online Gaming, E-Groceries, and Health-Tech

• Insurtech • E-groceries • EdTech CAGR: >30% • Digital payments • HealthTech • Online gaming • Digital lending 25) -

• Ecommerce • Digital media • FoodTech • Internet first brands CAGR: 12-30% • Online classifieds & rentals • Real estate tech • Beauty & personal care • AgriTech • Home services Projected growth rate (FY 20 • Online dating and matrimony • F&B services CAGR: 0-12% • Hospitality, travel and tourism • Shared mobility • Apparel and footwear • Entertainment

Long Mid Path to profitability

Source(s): Praxis analysis © 256 Network © Praxis Global Alliance | 24 VC Funds raised during periods of economic crises have higher returns

Net IRR to LPs by %, 1995 - 2016 2000-2016 is the period Dot com Global under consideration as crisis Financial funds with vintage post Crisis 2016 are yet generate or 24.0 realise portfolio gains to be comparable to a 21.0 benchmark 19.1 Avg. 18.5 17.2 return: 16.5 17.1 17.0 18.30% 15.3 15.1 14.6 14.0 14.1 Avg. 13.0 12.9 return: 11.2 10.9 10.9 13.45% 9.3 8.6 7.4 7.6

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Note(s): IRRs are net of fees, expenses and , Pooled IRRs have been calculated based on data compiled from 2,024 funds, including fully liquidated partnerships, formed between 1994 and 2016; funds post 2016 have largely not generated exits yet and hence have not been included. Data as of 30 June 2020. Source(s): Cambridge Associates © 256 Network © Praxis Global Alliance | 25 Tech giants were born during economic downturns

India based start-ups born during the Global Financial Crisis US based start-ups born during the Global Financial Crisis

Start-up Founded Valuation Investors Returns Start-up Founded Valuation Investors Returns

• Infoedge is • Founder expected to Collective gain made US$ 2008 ~US$ 4B significantly in 2009 US$ 67B 300M of a case of an IPO US$ 100K (expected in investment 2021) • Intel capital • Accel’s ~24% made 2.93X stake is worth returns ~US$ 24B US$ 4.6B with 2008 US$ 950M (invested in 2009 (Market cap.) only a US$ 2012, 2013 1.5M and exited in investment 2020) • Sequoia Capital made US$ 550M • Matrix US$ 100 B a 18.5x return 2008 (Market partners made 2008 (post IPO on its Series cap.) 30X returns Market cap.) A investment post Airbnb’s IPO

Source(s): Tracxn, Secondary research, Praxis analysis © 256 Network © Praxis Global Alliance | 26 The professional breadth of knowledge and skills of Venture Capital teams

Deal flow access

Deal Sourcing Deal selection and closure

• Cultivating rich networks • Art and science of selection

• Keeping ears to the ground • Selecting the optimal

Portfolio Value Creation Exit Management • Being a resourceful mentor • Exit Planning • Setting clear goals and incentives • Risk mitigation

Expediting & capturing value growth

© 256 Network © Praxis Global Alliance | 27 Cheat-sheet for selecting the right Venture Capital fund

Selecting the right fund manager

Investment strategy and funding Team skill and reputation Past track record of superior returns capability

Talk to references Understand the science IRRs / TVPI generated 1 GP skill sets can be evaluated 5 Understand how the firms operate at 9 Comparison of returns across GPs through conversations with LPs an intuitive level and consistency of returns

Check for attrition High attrition or poor succession Check for consistency Follow up rounds 2 6 10 planning indicate weak GP team How consistently do funds follow How many rounds of investment? If dynamics their investment strategy? Any repeat LPs were there

Fund size First time funds Other limited partners Bigger funds get access to better First time funds require a greater 3 A reputed LP trusting the fund is a 7 11 deal flows and bigger equity stakes due diligence to invest in, having good indication of the GP skills in portfolio investments had no track record in the past

Team backgrounds Capability to close the round Portfolio firms 4 Past experiences of team members 8 12 Inability to close has an opportunity Past investment decisions – analysis, with their synergies are a huge cost capacity and upticks contributor to returns

Source(s): Excerpts from several closed-door gatherings by 256 Network for Family Offices in India (2020-21) © 256 Network © Praxis Global Alliance | 28 MEMBER CONTRIBUTORS

Prashanth Prakash Partner | Accel Partners TV Mohandas Pai Chairman | Aarin Capital

Rajan Navani VC & MD | Jetline Group of Companies Gaurav Burman Director | Dabur International

Sudhir Sethi Chairman | Chiratae Ventures Alagappan Murugappan MD | Stratford House Advisors

Shiv Khemka Vice Chairman | Sun Group Anjali Bansal Founder | Avaana Capital

Gopal Srinivasan Chairman | TVS Capital Funds Siddarth Pai Founding Partner | 3one4 Capital

GV Ravishankar Managing Director | Sequoia Capital Abhas Gupta Vice President | Burman Family Holdings

Sandeep Singhal MD | Nexus Venture Partners Nitai Utkarsh Lead, Investment Strategy | Hero MotoCorp Ltd.

Rishabh Mariwala Director | Sharrp Ventures Anand Lunia Founding Partner | India Quotient

Chirantan Patnaik Director, Venture Capital | CDC Group Gaurav Sachdeva Managing Partner | JSW Ventures

Pranav Pai Founding Partner | 3one4 Capital Anirudh Damani Managing Partner | Artha India Ventures

Ikram Jaffer Private Equity | Premji Invest Vinod Abrol Head, Private Investment | SAR Family Office

Dr. Srikanth Sundararajan Partner | Ventureast Chetan Mehta CIO | Transworld Global

Soumya Rajan Founder & CEO | Waterfield Advisors Shailesh Jha VP, Corporate Finance | SUN Group

Nikhil Gupta Practice Head | Client Associates Alok Soni Co-Founder | Khyaal

Satveer Singh Thakral CEO | SGAN Arnav Sahni Vice Chairman’s Office | SUN Group

Munish Randev Founder | Cervin Family Office Saketh Katikaneni Analyst | Chiratae Ventures