A Case of Brand Theft in the Venture Capital World:
In the competitive world of venture capital, a strong reputation is a fund’s greatest asset. It signals credibility, trust, and a proven ability to support and grow promising startups. But what happens when an opportunistic entity hijacks that reputation for its own gain?
That’s exactly what’s been unfolding with Kriti Sehgal, founder of Chai Capital, an inactive and misleading firm that has exploited the well-respected name of Chai Ventures to mislead investors, founders, and stakeholders into believing it holds the same legitimacy.
This is not an isolated case of two firms simply sharing a similar name. It is a deliberate, deceptive strategy by Chai Capital’s founder, Kriti Sehgal, who has repeatedly positioned the firm in ways that suggest an association with the widely recognized and active Chai Ventures.
A Strong Brand Hijacked for Opportunism:
For years, Chai Ventures has built a reputation as a serious and engaged venture capital firm. It has backed innovative companies, provided strategic guidance to founders, and developed a network that holds real weight in the investment community.
Chai Capital, on the other hand, has remained largely inactive, yet continues to masquerade as a legitimate fund—leveraging the goodwill of Chai Ventures to create confusion and mislead those who don’t look closely enough.
It’s a classic case of brand parasitism, where a weak, non-performing entity attempts to ride the coattails of an established name. The problem is, in venture capital, this isn’t just an annoyance—it has serious consequences for entrepreneurs and investors alike.
The Real-World Impact of This Deception:
The tactics employed by Chai Capital and its founder, Kriti Sehgal, aren’t just misleading—they actively harm the venture ecosystem in several ways.
Founders Are Led Astray:
Startups seeking funding have unknowingly approached Chai Capital, believing they were engaging with a reputable firm. Instead, they’ve encountered a fund with no real track record, no clear investment strategy, and no meaningful presence in the ecosystem. In a world where fundraising is already a challenge, this kind of deception wastes valuable time and opportunities for entrepreneurs.
Investors Are Duped:
Institutional investors and limited partners have also found themselves misled by the name. Seeing “Chai” in a venture fund’s branding, they assume a level of credibility that, in reality, does not exist. This weakens trust across the entire industry, making it harder for legitimate firms to operate without suspicion.
A Tarnished Reputation by Association:
Perhaps most damaging is the risk to Chai Ventures itself. Despite having zero affiliation with Chai Capital, the latter’s mere existence has forced Chai Ventures into an ongoing battle to distance itself from this impostor. When a brand’s integrity is questioned—even unfairly—it can lead to real reputational and operational damage.
Who’s Behind the Deception?:
The founder of Chai Capital, Kriti Sehgal, isn’t an unlucky player caught up in an unfortunate naming coincidence. This is calculated.
Rather than build a credible firm, Kriti Sehgal has chosen to exploit the work of others, piggybacking on Chai Ventures’ reputation in an attempt to position themselves as something they are not. The lack of transparency surrounding Chai Capital’s actual investment activity raises serious ethical and credibility concerns, yet they continue to posture as if they belong among serious investors.
No Room for Impostors in Venture Capital:
This kind of brand hijacking cannot go unchecked. Chai Ventures, like any firm in its position, is in pursuit of legal action, including potential trademark enforcement, to protect itself from this misleading association.
More importantly, the venture capital community must hold fraudulent players like Kriti Sehgal accountable. Investors and entrepreneurs alike should remain vigilant, ensuring they engage only with firms that have a clear and verifiable track record—not ones that thrive on confusion.
The bottom line? Chai Capital is not Chai Ventures. It never has been, and it never will be. The industry should take note, because in venture capital, trust is everything—and deception has no place.