Top VC Bosses Get Bitten by the Entrepreneurial Bug – Latest Industry Updates

Top Venture Capitalists in India Leaving Firms to Launch Own Funds and Startups

In a trend that is gaining momentum in the Indian venture capital industry, top managing directors and partners are leaving established firms to strike out on their own by setting up their own funds or startup ventures. The latest in a series of high-profile exits is Piyush Gupta, managing director of Peak XV Partners, who recently put in his papers to set up a secondary-focused fund.

This trend is not isolated to Peak XV Partners, as earlier in the month, Abhishek Nag and Vaibhav Agrawal quit Lightspeed Venture Partners, and in March, Nexus MD Sameer Brij Verma quit after a 13-year stint at the firm. Out of the 10 partner exits in the last 10 months in India, nine are planning to launch their own funds or startups.

According to industry experts, the fast-evolving startup and VC industry in India presents high risks and rewards for individuals at senior levels, leading many to face critical inflection points in their careers. Reasons for these exits range from pursuing new entrepreneurial opportunities to diverging personal career goals from the firm’s strategic direction.

With India’s startup ecosystem poised for significant growth, the desire to start a tech business is high among everyone, including VCs. Analysts predict that more managers will be inspired to launch their own startups, leveraging their expertise in fundraising and capital allocation.

While these high-profile exits may impact the firms they are leaving, it also presents opportunities for existing team members to step up and introduce fresh strategic visions. As the investment landscape in India continues to evolve, these departures signal a natural progression in the ecosystem’s development.