LPs and GPs, it’s often said that fund size determines strategy and that’s very true for portfolio construction. But, another element on fund size is what the total value of exits need to be. A simple rule is what I’ll call the Rule of 30. This assumes that a fund owns 10% of a portfolio company on exit. Multiply fund size by 30 and that’s the total exit value the fund needs to get a 3x gross multiple.

Example: a $500M fund means it needs $15B of exit value. 10% ownership at exit is $1.5B which is the 3x gross multiple. $15B of exit value in 1 fund means 15 unicorn exits or a decacorn exit and 5 unicorn exits. Assuming a portfolio of 35 companies, that’s quite a hit rate 🤔

Btw a 3x gross multiple for a $500M fund is about a 2.6x net multiple ($1.5B less $200M of carry / $500M). Aside from deciding if that $500M fund can generate $15B of exit value, an LP will consider that 2.6x for venture vs what they can get in small buyout with a shorter timeline for distributions and perhaps lower risk.

Michael Kim, Founder at Cendana Capital

The ongoing debate in our industry between distribution and RIA models has created an unnecessary divide. This polarization has led to oversimplified views where one side sees itself as the exclusive provider of advice while the other gets dismissed as merely selling products. This has excluded distributors from giving investment advice while with less than 500 active RIAs the problem of access to investment advice has only compounded. The elephant in the room has been lost to semantics. What needs to be solved is access to quality and unbiased advice which would be possible only by increasing the numbers of those who are qualified to give it. Distributors must be co-opted into this program instead of excluded since their customers too need advice. Besides building a new channel of professionals under the RIA umbrella it would be good to induct distributors as advisors as well. Both would be able to address the central need of their customers but in a manner in which their respective customers are ready to remunerate them. 

Rohit Sarin, Founder of Client Associates

It's an uncomfortable thing to say, but every great company starts as one person seeing reality more clearly than most.

After 20 years of starting and seeding companies, I've become so much more confident in funding solo founders.

And I've seen enough co-founders get carried by the singular founder with the vision, the grit, the dogged resilience... yes, it takes a village, but there is an undeniable necessity of leadership here.

 Alexis Ohanian, Founder at 776

Recently published

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Starting this week, we’re piloting this new format to give you faster access to insights. Each week, you’ll get a quick view of our latest stories, standout reads from across the ecosystem, and reports worth revisiting.

Let’s dig in!

Are Platforms and Infra Players Disrupting the Power Balance of the Banks?

Embedded finance is redefining power of banks by decoupling capital from origination. Platforms now own the customer interface, while infra APIs control distribution and underwriting. Banks, unless adapted, risk becoming invisible utilities. In this article, we examine how embedded finance is reshaping the financial services value chain and what this means for the future of underwriting, capital flows, and control.

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Why This VC Walked Away from Startups to Fix Salons and Scale SMEs

In another interesting story from this week - after 17 years of early-stage investing, Sanjay Enishetty, a seasoned VC and former CEO of Naturals Salons, reflects on the diminishing edge in the startup game and why India’s mid-market with real cash flows, modest asks, and latent opportunity might be the more rewarding frontier.

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From Commodity to Capital Multiplier

Nagessh, founder of Curry Nation, tells us that private equity firms have not fully tapped into the asymmetric value of brand perception in their investment strategies. While brand-building typically lacks immediate visibility on the P&L, it can meaningfully de-risk exits, strengthen investor narratives, and generate organic customer demand. This pull effect can, in turn, reduce reliance on dealer incentives and improve margins. For funds focused on operational alpha, brand may be an underutilized lever.

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📚 What We’re Reading

India Private Equity’s Long Wait for an Institutionalised Local LP Base

India's PE firms are beginning to court domestic institutional investors…and while demand is strong (ChrysCapital's latest fund includes ~$200M of local capital), onboarding local LPs requires structural compromises that may dilute alignment and add complexity. Read more

Fintech Dystopia by Hilary J. Allen

If there’s one thing you read this weekend, make it this.

When publishers passed on her book about the darker truths behind Silicon Valley’s fintech playbook, Professor Hilary Allen decided to publish it online, chapter by chapter. FinTech Dystopia is a sharp, irreverent takedown of the sector’s hype, arguing that fintech often distracts from real solutions while skirting regulation and accountability.

I’m on Chapter II and loving it. The writing cuts through the noise with clarity and wit. It’s a much-needed counter to the endless stream of tech-utopia and cheerleading. Read more

How AI Could Reshape the Economics of the Asset Management Industry

AI, particularly agentic and generative models, can unlock 25–40% cost savings for asset managers and boost top line and risk control. Success hinges on redesigning workflows, upskilling teams, and embedding change across the business. Read more

📁 From Our Archives

Indian VC Survey 2025: Key Findings

This flagship report distils insights from 50+ VCs on where capital is heading, what keeps investors up at night, and why the bar for startups has never been higher. If you want a pulse check on India’s venture mood, this is it…with insights from Karthik Reddy, Anurag Ramdasan, Vignesh Shankar and more.

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🌴 Coming Up…

• We’ll be publishing A Practical Guide to SEBI’s Cybersecurity & Cyber Resilience Framework (CSCRF) Compliance for AIF CAT 1 and CAT 2 Funds

• We’re planning to write a report on benchmarking LLMs for financial research. We require volunteers who’ve done some R&D around this at their firms and are willing to lend us 30 mins for a quick survey. If your answer is yes, kindly respond to this email.