build3, which focuses on building impact startups with a ‘community-driven and conscientious approach, differing from the mainstream growth-at-all-costs model,’ is looking to raise $5 million to scale up its operations and impact.
It acts as both an investor and mentor for startups, helping youngsters in their entrepreneurial journeys.
“We are open to partnering with like-minded institutional investors interested in impact investing or supporting sustainable development goals (SDGs,” said Varun Chawla, founder, build3
“While discussions with potential investors have started, we have not yet secured substantial institutional funding apart from some recent support from the Startup India Seed Fund scheme,” he added.
build3 has worked with 41 startups through its accelerator program and out of these, 15 have received funding of ₹25 lakhs each in exchange for 5% equity.
“The ₹25 lakh is provided specifically to startups at the idea stage to help them build a Minimum Viable Product (MVP). This includes product development, market testing, and initial scaling efforts,” he said.
“Only the best startups in the accelerator program receive funding; not all participants are guaranteed financial support. We take a 5% equity stake in exchange for the ₹25 lakh, valuing these startups at around ₹5 crore at the idea stage,” he added.
Some of the startups supported by build3 include Ruby’s Coffee, focused on promoting Indian coffee and supporting local coffee growers, Good Lives, a corporate mental wellness platform offering digital and offline tools for HR departments to monitor and improve employee well-being and Oneboard, a travel experience platform that allows individuals to offer unique local experiences thus ensuring the local providers to have sustainable income.
The firm is gearing to organise its next accelerator programme scheduled to commence on November 1, with applications closing on October 15, 2024.
“It is a 10-week programme that offers funding and mentorship to the selected startups. The program will be mostly online, with 1-2 weeks offline in Goa, Mr Chawla said.
“The aims is to support startups in developing their MVPs and preparing for further rounds of funding. Up to 50 participants will be selected for this cohort,” he added.
Published – September 10, 2024 10:01 pm IST
