Venture capitalists live by just a few rules. Go large or go home is one of them. Founders are king is another.
Chiratae Ventures has some different ideas — and they could hold important lessons for a quick-modifying VC indusattempt.
The Bengaluru-based firm’s founder and chairman, Sudhir Sethi, often informs colleagues that its main responsibility is towards its limited partners, who should receive “customer first” treatment.
That’s led Chiratae to prioritize returning cash to investors in tiny chunks on a regular basis, rather than holding out for blockbuster exits.
It’s an unfashionable approach, to declare the least. But the strategy has enabled Chiratae to return more cash to investors (DPI) than most of its peers even as it’s sacrificed on overall gains, according to financial documents obtained exclusively by Newcomer and interviews with former executives.
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