General Investors FAQ

Fund Size	₹800 Cr + ₹400 Cr green-shoe
Stage Focus	Seed+ to Series A/B
Min Commitment (Indian Investors)	₹1 Crore
Min Commitment (International Investors)	US$150,000
Drawdown Start	June 2026 - over 30 months
Fund Tenure	8 + 1 + 1 years
GPs Commitment	₹80–100 Crore (~10% of the Corpus, strong GP–LP alignment)
Portfolio Size	~20 companies
Mandate	Lead or co-lead targeting 8–15% ownership with board rights.
First Cheque Size	₹10–20 Crore
Follow-on Capital	60% of the Fund
Jurisdiction Focus	India-only deployment. All portfolio companies would be headquartered or have a subsidiary in India.
Sector Focus	Please visit our website www.silverx.vc for our investment thesis.

What is an Alternate Investment Fund (AIF)?

Alternative Investment Fund or AIF means a fund set up to pool funds from various investors (whether Indian or foreign) for investing in companies within a defined investment strategy for capital growth and benefit of its investors.

What is a Cat-II AIF?

Cat-II Fund is a category of AIF that raises funds from various investors and invests in unlisted companies including startups.

What is SilverX Fund?

SilverX Fund is being set up as a Cat-II Fund which is registered in January 2026 with SEBI under the SEBI AIF Regulations and invests as per the thesis set out in the Private Placement Memorandum (PPM).

What is the legal form of the Fund?

The Fund is set up as a Trust organized under the Indian Trusts Act, 1882 and registered with the Registrar of Trust at Hyderabad. The Fund is seeking registration with SEBI as a Cat-II Fund. The investor investing in the Fund will be issued Units in the Fund, which are of different classes based on the different class of investors.

Is SilverX Fund a pooled vehicle?

Yes. SilverX Fund is a pooled AIF, all LP commitments are aggregated into a single fund vehicle which then deploys capital across the portfolio. LPs receive pro-rata exposure to all fund investments based on their commitment size relative to the total fund corpus. There is no deal-by-deal selection for standard LP participation.

What is the corpus of the Fund?

The corpus of the fund means how much money a fund can pool from its investors. The Fund has a corpus of INR 800 Crore and it has a greenshoe option of an additional INR 400 Crore, which will be exercised if the investors response to the Fund exceeds INR 800 Crore.

Who is eligible to invest in SilverX Fund?

Any individual (Indian citizen or foreign citizen), company (Indian and foreign), trust, HUF etc. can invest in the Fund. However, investors from Pakistan and Bangladesh cannot invest in the Fund.

Who is the Trustee of the Fund?

Orbis Trusteeship Services Private Limited (Trustee), having its office at 4A, Ocus Technopolis, Sector 54, Golf Club, Gurgaon 122 002, Haryana, is the Trustee of the Fund, which has oversight on the operations and functioning of the Fund. Orbis is a leading player in India providing securities services since 2009 and works with many larger financial institutions, venture capital funds and private equity players in India.

Who is the Sponsor of the Fund?

SilverX Sponsors LLP is the main Sponsor of the Fund, which has set up the Fund and acts as its promoter. The Sponsor will invest 5% or more of the Corpus in the Fund. Under the Regulations, it is required to invest only 2.50% of the Corpus. The Partners of the Sponsor are senior industry leaders and professionals who have been investing in startups since 2012 and have been working very closely with the startup ecosystem for a long time.

Who is the Investment Manager of the Fund?

SilverX Advisors LLP is the Investment Manager of the Fund. The Manager is responsible for the fund raising, deal sourcing, making investments in startups, portfolio management, marketing, exits, reporting and regulatory compliance and day to day operations of the Fund. The Partners of the Manager are senior industry leaders and professionals who have been investing in startups since 2012 and have been working very closely with the startup ecosystem for a long time. They have prior and rich experience of running early stage venture capital funds and making angel investments.

What is the track record of the Investment Manager?

The Investment Manager team comprises senior industry leaders and professionals who have been investing in startups since 2012. They have prior and rich experience of running early stage venture capital funds and making angel investments. The Investment Manager team has a track record of making investments into about 150 startups and seen 20 exits with portfolio AUM of $150Mn across personal angel investments and previous funds.

What is the performance of Silverneedle Ventures, the Fund I?

Silverneedle Ventures is SEBI Category I AIF and started investing in 2022-23. It deployed ₹76 Cr across 16 companies in 24 months and has achieved final closure. Its current MOIC is ~1.6x (as of Mar 2025) and expected to achieve a MOIC of 5x–7x within the next 4–7 years.

What is the hurdle rate for the Fund?

The hurdle rate is the minimum annual return you must receive before the fund managers earn any carried interest (profit share). It acts as a performance floor. SilverX GPs will participate in profits only after the investor has received their investment amount back plus the hurdle return. In simple terms, if an investor invests ₹1 Cr in the Fund, they will first receive ₹1 Cr plus the hurdle rate on that amount before the GPs earn any carry. For Indian investors, the hurdle rate is 10% per annum compounded. For US/International investors, the hurdle rate is 7% per annum compounded.

What is the life of the fund? What happens at the end?

The fund has a tenure of 8+1+1 years, a base term of 8 years with two optional 1-year extensions with LPs consent. At the end of the Fund, the investment manager will sell all investments and return the proceeds to the investors net of the carry and expenses.

Are co-investment rights available in the Fund?

Co-investment rights are available to select large LPs pro-rata to their commitment, who can co-invest in a portfolio company directly alongside the fund at the same terms and valuation. Co-investment opportunities are at the GP's discretion and not guaranteed and also governed under the SEBI regulations.

Does the fund have a pre-IPO allocation?

Yes, up to 10–15% of the fund corpus is allocated towards pre-IPO and special situation investments.

Can an investor exit in between?

The Fund is a close-ended fund and hence you cannot exit in between. However, in accordance with SEBI Regulations and PPM, you may transfer your units to another investor if you are able to find one. The Investment Manager may help you find an interested buyer. Please note that transfer of units in between the tenure typically will happen at a discount to the applicable NAV given the illiquid nature of the fund.

What is the minimum commitment amount for the Fund and drawdown schedule?

For Indian investors, minimum commitment is ₹1 Crore. The entire commitment amount will be drawn in 4–5 tranches over the 30 months starting from June 2026. For International Investors, minimum commitment is US$150,000, drawn in 4–5 tranches over the 30 months starting from June 2026. The international investors will invest through the US feeder structure. Investors will receive a formal drawdown notice of 15 business days before each drawdown.

What is the investor onboarding process for Indian investors?

Step 1, Sign Soft Commitment Letter indicating your commitment amount with PAN / CKYC number.

Step 2, Receive Fund Docs like Private Placement Memorandum (PPM) taken on records by SEBI and draft Contribution Agreement.

Step 3, Onboarding through our vendor's digital platform using your PAN / CKYC number. Takes typically 5–10 business days, runs in parallel with Step 2.

Step 4, Execution of Contribution Agreement digitally through our vendor's digital platform. Your commitment becomes legally binding at this stage.

Step 5, Capital Calls Begin with first drawdown in June 2026. Capital will be drawn in 4–5 tranches over the next 30 months. Investors will receive a formal drawdown notice of 15 business days before each drawdown.

What are the KYC requirements for Indian investors?

As a SEBI-registered AIF, you are required to submit your KYC documents, CRS and FATCA declarations to the Investment Manager at the time of onboarding. The process is straightforward and handled digitally wherever possible. Additional documents may be requested depending on the investor type or jurisdiction. International investors may need to provide documents apostilled or notarised depending on their country of residence. The Investment Manager will guide you through any additional requirements.

What are the periodical updates/statements investors receive?

We believe in keeping our LPs well-informed and engaged periodically. You can expect to receive the following reporting:

Monthly, Newsletter: Portfolio updates, market colour, and team insights delivered to your inbox.

Quarterly, Financial Update, statement of units, capital deployment status, and key milestones.

Annually, Annual Report of the Fund, its valuation and portfolio performance as mandated by SEBI.

In addition, we host periodic investor meets and webinars with our portfolio companies where the updates are shared.

What are the different classes of units issued to the investors?

The Fund issues different classes of units to the investors based on the amount of commitments made and different classes of investors. Please refer to the PPM/Contribution Agreement for more details. The Fund issues the respective units to the investor in its respective demat account based on the drawdown received from time to time.

When should the investors expect returns from the Fund?

VC investing is a long-duration asset class. Returns build as portfolio companies grow, raise follow-on rounds, and find exit opportunities.

Period	Phase	Status
Years 1–3	Investment Period	Capital deployed across ~20 portfolio companies. No distribution during this period.
Years 4–5	First Returns	Initial exits via secondary sales or M&A may begin to materialise.
Years 6–7	Peak Distributions	Most return of capital, strategic M&A, pre-IPO secondaries, Series B/C exits.
Years 8–10	Final Wind-Down	Remaining positions exited + gains distributed.

Distributions are not guaranteed and depend on actual portfolio performance and exit events.

What are the tax implications for an Indian investor?

As a SEBI-registered Category II AIF, SilverX operates as a pass-through entity for tax purposes. This means gains are taxed in the hands of the investor, not at the fund level.

Tax treatment	Pass-through, taxed at the investor level
Applicable tax	Long-Term Capital Gains (LTCG) if units are held for 24 months or more Short-Term Capital Gains (STCG) if units are held for less than 24 months
Applicable rate	For LTCG, 12.5% plus applicable surcharge and education cess For STCG, 20% plus applicable surcharge and education cess
Annual tax statement	Provided by the fund to each LP

The Fund is currently required to withhold 10% tax on the gains for Indian investors, which can be claimed back by the investors in their income tax filings. However, if the Indian investor does not have PAN, then the withholding tax rate will be 20%.

Note: Tax treatments for different classes of investors may vary. We recommend consulting a qualified tax advisor for professional advice. The above tax rates may change as per future government policy.

How are the grievances/concerns of investors handled?

The Fund is registered with SEBI and operates under a strong regulatory framework under the SEBI regulations. The Fund is supervised by SEBI, the Trustee (Orbis), Custodian (DBS) and the Auditors who collectively monitor the workings of the Fund and the investment manager to safeguard the interests of investors. Our advisors who are senior experts in finance, taxation, and governance, advise us from time to time on regulatory and governance measures.

If an investor has a concern or grievance, here is the escalation path:

Step 1, Investment Manager: Reach out to the SilverX team. Most queries and concerns are resolved at this stage.

Step 2, SEBI: In case you are not satisfied with the resolution, you can approach SEBI by using the SCORES platform (scores.sebi.gov.in), which is SEBI's centralized grievance redressal system for the capital market entities. SEBI takes a strong view of any complaint or grievance not resolved within a defined time frame by the investment manager.

Step 3, Arbitration: For any dispute of a serious nature, the PPM and the contribution agreement provide for resolution via arbitration, which is a well defined alternative dispute resolution mechanism.

Want to set up a call?

Questions? Write to us at natasha@silverx.vc

This FAQ is prepared by SilverX for the general information of the investors or prospective investors of SilverX Fund, and it does not constitute legal, tax, or investment advice. You are recommended to consult your legal advisor and a qualified tax advisor before making any investment decisions. SilverX reserves the right to modify this FAQ from time to time.