Venture Visionary: Sanjay Mehta’s 100X.VC Paves the Way for Indian Start-up’s

In the dynamic landscape of India’s venture capital scene, Sanjay Mehta stands out as a trailblazer with a vision to revolutionize start-up funding. Widely recognized for his spectacular exits, including the 280x return from Oyo Rooms in 2016, Mehta has become a celebrated figure in the country’s entrepreneurial circles. However, it’s not just about the notable successes; Mehta’s focus on fostering innovation led him to establish 100X.VC, an initiative aimed at transforming the start-up funding ecosystem in India.

While Mehta has made impactful personal investments through his family office, Mehta Ventures, his journey took an intriguing turn two years ago with the inception of 100X.VC. This venture marked a shift from being an investor to an entrepreneurial enabler. With the mission to invest in 100 startups every year, Mehta aimed to showcase these startups by committing his personal funds. This not only brought visibility but also added credibility to these budding ventures, making it easier for them to secure subsequent rounds of funding as they progressed.

Mehta identified key challenges within India’s nascent startup ecosystem, particularly the time-consuming process of closing deals and the prevalence of marketing-centric angel funding. To address these issues, he envisioned 100X.VC as a transparent platform that injects risk capital—Rs 2.5 million as the first investment—into each of the 100 startups annually. The approach aimed to eliminate friction in the fundraising process, especially for early-stage startups dealing with uncertain valuations.

To formalize and simplify seed funding, Mehta introduced the iSAFE note (India Simple Agreement for Future Equity). This document, resembling a convertible note, offers advantages such as not reflecting as debt on a startup’s books and avoiding repayment obligations if the venture doesn’t succeed. By investing approximately Rs 2.5 million in each portfolio company initially, 100X.VC secures the right for future equity during subsequent funding rounds, streamlining transactions and facilitating collaboration with other angel investors.

Beyond funding, Mehta envisioned 100X.VC as a hub for continuous engagement and mentorship. The firm adopted the motto “Mentoring Unlimited,” emphasizing support beyond financial aspects. From hiring and pricing strategies to business model development and even guiding founders through pivotal moments like business model pivots, 100X.VC aims to be a catalyst for sustained start-up growth. Mehta’s commitment to empowering start-ups extends to open-sourcing the iSAFE note. By making this simplified funding document available to all, he has facilitated smoother transactions, minimizing legal complexities and reducing financial burdens on founders. This move aligns with 100X.VC’s overarching philosophy of fostering entrepreneurship and innovation.

One notable aspect of 100X.VC is its sector-agnostic investment strategy. From banana chips ventures to robotics and drone companies, Mehta and his team seek out start-ups with large market opportunities. The firm’s focus on moon shot investments is evident in its support for ventures like Kroop AI, which detects deep fakes, and Talkie, developing a voice-only collaboration tool. Start-up’s under the 100X.VC umbrella praise the founder-friendly environment fostered by Mehta and his team. The firm’s commitment goes beyond providing capital, with portfolio companies valuing the downstream impact on their growth. Founders appreciate the guidance, networking opportunities, and valuable introductions to potential investors and clients facilitated by 100X.VC.

As India’s startup ecosystem evolves, Mehta reflects on the transformation he has witnessed over the past decade. The rise of well-educated founders, increased government support, and a growing entrepreneurial spirit are promising signs. However, he emphasizes the need for more domestic capital involvement to reshape the landscape. Mehta envisions a future where Indian corporations actively contribute to the startup ecosystem, creating a more sustainable and self-reliant innovation environment.

In addition to its investment activities, 100X.VC operates Gurukul, an online education portal aimed at aspiring entrepreneurs. Mehta sees knowledge sharing as a crucial component in nurturing the next generation of successful founders. The platform consolidates insights from experienced founders, providing valuable information to guide new entrepreneurs on their journeys.

Mehta’s optimism for the future is grounded in the belief that India is on the brink of a significant change in its startup landscape. As more startups emerge and thrive, he envisions a scenario where domestic investors play a pivotal role, reducing reliance on global giants. The quest for more “Tata acquiring BigBasket” moments rather than foreign acquisitions underscores his vision for a self-sufficient and robust entrepreneurial ecosystem in India.