Mumbai based Piper Serica Advisors Pvt. Ltd. has recently launched SEBI Registered Category 1 Angel Fund to invest in early stage companies that are using technology to disrupt or significantly improve industries and processes.
Current fund size is limited 100 crores with a small green shoe option and the angel fund will invest 30-40 over the next 3 year period. The launch was led by Abhay Agarwal, founder and fund manager of Piper Serica.
“Piper Serica’s Angel Fund primarily focuses on start-ups with an exponential growth model. The fund aims to grow seed-to-IPO The fund will remain with its winners for up to 10 years and to reduce the risk of higher mortality. The fund will use its proprietary AI ML-based tool called Yoda.AI, the portfolio management services provider said in a statement.
The tool uses 17 parameters to estimate the probability of success and then selects a company with a score of 70% or higher to pursue further work. This is the first AIF being raised by Piper Serica and it plans to scale up a range of AIFs in the coming years and the fund will prioritize joint investment opportunities with other major investors including syndicates, individuals, angel platforms and funds. , accelerators may be included. incubator, the company said.
“Piper Serica Angel Fund will reduce the risk of high mortality risk by diversifying the portfolio of over 30-40 investors. This will improve your returns by staying invested for as long as possible. According to a study conducted by Industry Ventures, a longer holding period improves the success rate and IRR. Early stage funds with an average holding period of 3 years have a 78% failure rate and 11% IRR, while those with 9 years of holding have a 64% failure rate and 30% IRR,” according to the statement.
Established in 2003, Piper Serica is a SEBI registered Portfolio Management Services (PMS) company that provides Indian and international investors with access to the Indian equity markets. AUM of PMS is 400 crores as reported by SEBI and has to build an asset under management 2000 crores in the coming 2-3 years.