Riverstone Capital, founded by Sanchie Shroff and Arpit Garg, aims to empower Indian founders with a $15 million early-stage fund, leveraging their backgrounds in tech investing and product management.
When Sanchie Shroff and Arpit Garg met at a pre-Harvard Business School (HBS) networking trip to Goa, in southwestern India, in July 2023, they couldn’t have predicted the entrepreneurial partnership that would follow.
The meeting turned out to be more than just a casual networking event for the two future classmates preparing for their MBA journey at one of the world’s most renowned business schools. It connected two like-minded individuals with a shared vision of backing entrepreneurs and helping them succeed
Despite their differing career paths, they discovered a strong alignment in their goals. Born in second-tier Indian cities — Shroff in Patna and Garg in Lucknow — they brought a unique perspective on India’s untapped potential beyond its major metros. Together, they aimed to uplift Indian founders globally.
The duo arrived at Harvard in August 2023 and, within a month, began brainstorming ideas for a venture. After exploring several ideas, from launching a venture studio to incubating startups, they quickly realized that their complementary skill sets and backgrounds in investing and product management were ideally suited for venture capital.
By October, they finalized their decision to establish Riverstone Capital, an early-stage angel syndicate fund dedicated to nurturing the next wave of startups operating in the Consumer and SaaS sectors, with a focus on pre-seed to pre-Series A tech companies.
Shroff and Garg explained the idea behind the fund and how it evolved in a recent interview with The American Bazaar, shedding light on the thought process that led to the formation of the fund.
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“In some sense, our backgrounds helped us narrow down the idea pretty quickly,” Garg said. “We went through a lot of iterations, but eventually, we realized that full venture studios didn’t align incentives well, especially in India. That’s when it pivoted into a venture fund.”
With their unique combination of professional experiences spanning investment, tech, and product management, the general partners aim to provide more than just capital.
Unlike many of their fellow HBS students who typically pursue careers in consulting or finance in the United States, they decided to return to India to empower founders by leveraging their vast networks, connecting them with industry experts, and helping them navigate the complexities of scaling businesses across borders.
“We want to back Indian founders, whether they’re in India or the U.S.,” Garg explains. “But initially, our focus will be more on India, where we see incredible potential in early-stage companies.”
Investment thesis
Their investment thesis centers on sectors they know intimately: Consumer Tech, B2B SaaS, and D2C Brands.
In a short span, Riverstone has already made significant strides. It began raising capital through Special Purpose Vehicles (SPVs) on AngelList, a platform known for simplifying cross-border investments.
So far, they’ve evaluated over 200 startups, issued four term sheets, and closed their first two SPVs, both of which were “oversubscribed within weeks”—the first one by 25% and the second by 40%.
Each SPV raised $100,000, and Shroff and Garg are currently raising funds for two additional deals.
“Our initial goal was to test the waters, and the response has been overwhelming,” says Shroff. “The traction we’ve seen gives us confidence as we prepare to launch a formal $15 million fund in early 2025.”
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Garg says that Riverstone Capital employs a meticulous screening process, with both partners taking a hands-on approach to evaluating potential investments by combining rigorous financial analysis with creative due diligence methods.
“Our due diligence goes beyond just looking at numbers,” Garg notes. “We speak directly to founders, conduct customer interviews, and even test products ourselves.”
He highlights a recent evaluation of a D2C oatmilk brand as an example. The team didn’t just rely on metrics—they organized a blind taste test, comparing the startup’s product with competitors, and even sent samples to family and friends around the world for feedback.
“My sister is in London, and I send her around looking for [the brand] in stores,” Garg says. “The process can be fun depending on what you’re evaluating.”
The duo emphasizes the importance of understanding both the founder’s vision and the product’s market fit. They also leverage their professional networks to conduct reference checks and gather industry insights.
Complementary backgrounds
Shroff and Garg’s professional experiences are as impressive as they are complementary. Together, they bring over 12 years of experience spanning consulting, tech strategy, investing, and product management.
Shroff, who was born in Patna, the capital of Bihar, says it is not commonplace for someone from her background to do what she is doing. “I was a first-generation [college] student in my family,” she says.
She earned her bachelor’s degree in commerce from Delhi University’s Shri Ram College of Commerce and has four years of experience in investing. She deployed $400 million at SoftBank and WestBridge Capital, evaluating companies across sectors such as Consumer Tech, SaaS, Fintech, and EdTech. She also worked as a Management Consultant at McKinsey & Co., where she assisted portfolio companies with go-to-market strategies, C-level hiring, and product strategy.
Garg, a cum laude graduate in Mechanical Engineering and Economics from Rice University, spent five years at YouTube (Google). There, he led the YouTube Partner Program, managing 3 million creators and overseeing $10 billion in payouts. He also spearheaded YouTube’s revenue-sharing program for short-form video, successfully outpacing competitors like TikTok.
Garg further honed his investment skills as a Summer Investment Associate at India Quotient, focusing on Consumer Tech and SaaS.
“I don’t know anything else but investing, and Arpit handled global operations at YouTube,” says Shroff of her colleague and fellow general partner. “His passion was all about working with small founders early in their careers—helping them monetize, figure out their product strategy, and manage product launches.”
Mentorship at Harvard
The mentorship Shroff and Garg received at Harvard Business School played a pivotal role in shaping Riverstone Capital.
The two credit a number of professors, including Reza Satchu, Alvaro Rodríguez Arregui, Bob White, and Jeff Bussgang.
Satchu’s “Founder’s Mindset” session inspired them to commit fully to entrepreneurship. “That weekend session pushed us to take the leap. By the end, we’d set up our first email and officially kicked things off,” says Shroff.
Rodríguez Arregui, an investor in emerging markets, provided practical advice on fund structuring and portfolio strategy. “His insights into the Indian VC ecosystem have been invaluable,” Garg notes.
White, founder of Bain Capital, was instrumental early on. “He reviewed our rough pitch deck in January and gave game-changing feedback. Learning from his course on launching investment firms was incredibly motivating,” says Garg.
Bussgang, the founder of the VC firm Flybridge, offered critical guidance through his Venture Capital Journey class. “He helped us refine our pitch to an LP, and his advice was spot on,” Shroff explains.