Analysis · Financial Services

Cocoon Capital founder critiques India startup rules

By Startup Enthusiast · 24 January 2026

What they do

Cocoon Capital is a deep tech venture fund focused on early stage enterprise technology investments

Co-founder Will Klippgen criticizes India's ban on convertible instruments for increasing friction and slowing deployment

The fund has invested in companies like Ixigo but also experienced failures such as GoGoBus

Will Klippgen is the co-founder of Cocoon Capital and Partner Emeritus.
He previously co-founded Kelkoo.com, a B2C shopping portal.
He was an angel investor in Singapore during the mid-2000s.
Cocoon Capital focuses on enterprise tech and deep tech sectors.
The fund invests in pre-seed and seed stage companies.
It limits investments to a maximum of five companies per year.
Klippgen argues that India's ban on convertible instruments restricts flexibility.
He states this ban pushes founders into artificial pricing games.

India has nearly 14 lakh registered startups with increasing participation from Tier II and III cities.
Cocoon Capital's second fund was among the top three vintage performers in 2018.
Southeast Asia faces fragmented digital economy gaps in finance and logistics.

Cocoon Capital prioritizes quality over quantity in its investment strategy.
The fund does not pay salaries to partners for the first five years.
Ixigo was an early investment that listed in Mumbai in 2024.
GoGoBus was an investment that failed and did not succeed.
Buymed is a Vietnam startup improving pharmaceutical distribution through an online app.
Buymed ensures authenticity and safety while improving last-mile efficiency.