Arali Ventures

Arali Ventures is a venture capital (VC) fund management enterprise planning to raise its second fund. The partners Rajiv Raghunandan and Arun Raghavan who co-founded the enterprise had limited investment experience when they floated their first fund Arali I. The case discusses the challenges the partners faced while raising Arali I and the creative structuring they consequently resorted to. Despite the early success they had with investing Arali I, they are now anxious about whether Arali II will be received by prospective investors, given the uncertain investment outlook caused by the decline in valuation of technology stocks in the USA. The case discusses how the partners structured the fund, the deal sourcing and investment strategy of the fund, and their post financing engagement with portfolio companies.

It further discusses:

• Principal features of the early-stage funding ecosystem in India
• Regulatory environment relating to venture capital and how it influences business decisions of an early-stage investment fund
• Investment processes followed by an early-stage investment fund
• Performance measurement of an early-stage fund
• Necessary preparations for the fund management team for launching a second fund

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