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Inside 3one4 Capital’s Decade-Long Exit Track Record
- 3one4 Capital achieved a 58x return from the equity sale of its partial shareholding in Darwinbox, marking a significant milestone for the Indian SaaS market.
- Despite launching during a challenging period in India's venture ecosystem, 3one4 Capital saw their entry valuations become highly affordable, leading to successful returns.
- Fund I of 3one4 Capital, launched in 2016, was fully returned within its 8+2 year lifecycle, registering an MOIC of 58.07x and an IRR of 65.08% on its exit.
- The firm has 4 funds under management, with Fund IV launched in 2023 with a $225 Mn corpus, backing 100+ startups and recording 26 profitable exits.
- 3one4 Capital's success was attributed to its operating background, hands-on investment approach, and ability to demonstrate clarity in strategy and governance.
- The Indian LPs backing 3one4 sought execution-oriented strategies and long-term discipline, contributing to the fund's successful performance and returns.
- 3one4 Capital emphasizes the importance of planning exits well in advance and collaborating with founders to achieve liquidity through various exit routes.
- Lessons learned include the challenges of managing positive surprises, fund size limitations affecting the ability to back breakout winners, and the importance of intuition in VC decisions.
- The firm's journey reflects the complexity and nuances of venture capital, highlighting the balance between risk management, discipline, and intuition.
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