Every business first sprouts from a gap in the market. For Vijay Lavhale and Ravi Chachra, the gap was in the availability of venture debt for early-stage startups. Despite the increasing size of early-stage funding rounds, venture debt remained largely inaccessible to these startups, accounting for less than 10% of venture equity. Lavhale and Chachra knew that they needed a solution that would democratize venture debt and cater to the unique needs of both startups and investors. And so, in the second half of 2021, they founded a platform of their own: 8vdX.
"8vdX was born out of the desire to make venture debt easily available to early-stage startups, helping them secure growth capital without significant equity dilution," said Chachra.
Unlike most companies that deal with one side or the other, 8vdX hosts a two-sided marketplace that offers both unique investment opportunities to accredited investors and founder-friendly venture debt products. The company effectively bridges the gap between investors and startups, allowing them to connect in a way that benefits both groups.
When dealing with the challenge of venture debt, the two founders identified another problem: the lack of benchmarking tools for founders to measure their performance against competitors. To solve this problem, they developed Yardstick, a KPI benchmarking and valuation insights tool that leverages AI and ML to provide startups and investors with actionable insights. With the insights provided by Yardstick, the groups can cooperate to make data-driven decisions that benefit both parties.
8vdX also introduced the Startup Stack, a comprehensive suite of tools and resources to help early-stage founders navigate their entrepreneurial journey. In addition to tools like Yardstick, Startup Stack includes a fundraising CRM and Seedex booster program to provide additional capital support. The next step was to launch VentureInsights, which caters to the needs of venture capital firms and angel investors by allowing them to manage their deal pipelines, facilitate investor servicing and co-investments, and continue tracking and benchmarking startups using Yardstick.
"With our unique combination of venture debt products and data-driven tools, 8vdX is poised to become the go-to platform for early-stage startups and investors seeking to navigate the complex world of fundraising and investing," added Lavhale.
So, how exactly is 8vdX able to create such powerful tools to change the game of early-stage venture investing? The answer lies in the wealth of experience of its two founders, Ravi Chachra and Vijay Lavhale. Ravi Chachra is a serial entrepreneur with deep experience of launching and operating companies in both technology and financial services sectors. Ravi co-founded SNAZ Commerce Solutions in 1999, a mobile wallet featuring a universal shopping cart and single click checkout for telecom carriers. After the Dot.com bust, he set up a fund to acquire busted convertibles bonds of technology companies that could thrive in the future. The 8vdX platform melds Ravi's extensive experience in both technology and financial worlds. Ravi holds a Degree in Computer Science and an MBA in Finance from Wharton School.
Vijay Lavhale brings his own financial expertise to the company as a CFA Charterholder with an MBA from IIM Bangalore. Lavhale's studies helped him develop a deep expertise in fintech, as well as a passion for entrepreneurship. Before co-founding 8vdX, Lavhale worked as an Associate Vice President of Investments at Eight Capital, an Investment Management company in Mumbai. His work at Eight Capital gave him a deep understanding of the financial world and the needs of early-stage startups, which proved instrumental in the creation of 8vdX and its landmark products.
Lavhale has played a pivotal role in designing and launching 8vdX's unique, two-sided marketplace. He has led the development and management of the company's fintech platform, ensuring a seamless and efficient user experience. Lavhale also brings a holistic perspective to 8vdX thanks to his experience in distressed and special situation investments, as well as analytics and consulting for private equity clients. The combination of his technical expertise, financial knowledge, and entrepreneurial spirit makes him well-equipped to carry out 8vdX's mission to revolutionize venture debt and democratize access to early-stage startup financing.
Under the leadership of Lavhale and Chachra, 8vdX is making significant strides in the industry. In the last 18 months, they've managed to raise capital from over 30 accredited investors and provide funding to over 50 startups. They've amassed a current AUM of $8 million, with expectations to reach $50 million in the next 12 months. The company also successfully raised a seed round of $3 million from pedigreed venture capital investors across the globe, including the esteemed Y Combinator.
Much of 8vdX's success can be attributed to its unique, data-driven, and first-of-its-kind model for early-stage venture investing. But the bulk of the company's success lies in the experience of its founders, Ravi Chachra and Vijay Lavhale. Thanks to their expertise, they've managed to grow a platform that's quickly becoming a centerpiece at the intersection of debt, venture investing, and technology.
