Our First Principles: Building a Top 1% Venture Capital Portfolio
Introduction
At Artha Venture Partners, we believe that successful businesses are founded on six core principles. These principles guide our investment decisions across all our funds, ensuring that we back companies with the potential to not only succeed but also lead their industries.
Solve Real Problems
We believe that the foundation of a successful venture capital portfolio is investing in businesses that solve fundamental, real-world human problems. By backing startups that address genuine needs, we create sustainable value and long-term demand, ultimately driving strong returns across our portfolio.
Founder’s Right to Win
With our capital, we invest in founders who have a unique advantage—whether through personal connection, deep expertise, or extensive experience with the problem they’re solving. This alignment provides them with a competitive edge, enhancing their chances of successful execution and delivering high returns for our portfolio.
Positive Unit Economics
Financial sustainability is essential for top-performing venture portfolios. We prioritize companies with positive unit economics, as no financial model can transform a gross loss into a net profit. By backing businesses built on strong economic fundamentals, we ensure that portfolio growth is both achievable and sustainable, contributing to reliable IRR.
Massive Scale Potential
For a venture capital portfolio to yield high returns, scalability is crucial. We target companies capable of addressing large markets with significant growth potential, enabling them to expand rapidly and capture substantial market share. This focus on scale ensures our investments have the potential to deliver exponential growth, enhancing overall portfolio performance.
Path to Market Leadership with Strong Moats
At Artha, we support companies with a clear strategy to become one of the top players in their category, fortified by strong moats—unique competitive advantages that create lasting barriers to entry. This approach ensures that our portfolio companies can sustain their leadership positions, delivering stable growth and secure returns over time.
Tech-Enabled, Not Tech-First
In our experience, sustainable ventures in the Indian market thrive when technology serves as an enabler, enhancing a strong business model rather than being the sole value proposition. We back companies that leverage technology to amplify their core strengths, drive efficiency, and scale effectively, contributing to resilient and tech-enhanced growth across our portfolio.
These first principles form the foundation of Artha’s strategy for building a high-performing, top 1% venture capital portfolio. By adhering to these principles, we ensure that we identify and support ventures built on sustainable, scalable, and impactful business models, ultimately driving superior returns for our investors.
Explore Our Funds
Interested in learning more about how Artha Venture Partners leverages these core beliefs across all our funds?
Contact Us to explore each fund’s portfolio to see how we drive growth and innovation.