People · 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 investments

Co-founder Will Klippgen argues that India's ban on convertible instruments restricts flexibility and increases friction

The fund has invested in companies like Ixigo and GoGoBus since launching in 2016

Cocoon Capital was launched in 2016 by Will Klippgen and Michael Blakey.
The firm focuses on enterprise technology and deep tech startups at pre-seed and seed stages.
It invests in a maximum of five companies per year to prioritize quality over quantity.
Klippgen previously founded Kelkoo.com, a B2C shopping comparison portal, before becoming an angel investor.
He served as Partner Emeritus at Cocoon Capital after its second fund became a top performer in 2018.
The fund did not draw salaries for its first five years of operation.
Klippgen critiqued the Indian government's ban on convertible instruments for creating artificial pricing games.
He stated that these regulations increase friction and slow down capital deployment for startups.

India has nearly 14 lakh registered startups with increasing participation from Tier II and III cities.
Southeast Asia faces fragmented digital economy gaps in finance, logistics, and infrastructure.
Buymed in Vietnam uses an online app to improve pharmaceutical distribution efficiency and safety.

Cocoon Capital targets early stage enterprise technology and deep tech sectors.
The fund limits its portfolio to five companies annually to ensure high-quality support.
Klippgen has experience as an angel investor in Singapore during the mid-2000s.
The firm's second fund ranked among the top three performers in its vintage year.
Klippgen previously built Kelkoo.com, a business-to-consumer shopping comparison platform.
Investments include early stakes in Ixigo, which listed in Mumbai in 2024.
The fund also invested in GoGoBus, though that venture did not succeed.
Klippgen highlights inefficiencies in payments, lending, and physical distribution in Southeast Asia.
Buymed demonstrates how digital tools can enhance last-mile efficiency for regulators and suppliers.