StartupXseed Ventures, announces an Rs.200 Cr Fund II, focussed at investing in Deep Tech, B2B focussed companies, from Seed to Early Growth Stages. The Fund announced its first closing with Rs.65 Crores of Commitments from Existing & new LPs and plans to complete the fundraising in the next 6-9 months.
Founded by Mr. B. V. Naidu (Former Director STPI) and Mr. Ravi Thakur, along with Mr. Mohandas Pai (through Aarin Capital), V. Balakrishnan, and other like-minded leaders from the Industry, in a short span the fund has found its niche in investing into 12 Deep Tech, disruptive companies and also exited 3 investments. Fund – I returned 35% of the principal much before it had completed the final drawdown and investment cycle.
The Fund I investments include Aarav Unmanned Systems (AUS), AIBono, Anlyz, AlphaIC, Bellatrix, CloudSEK, DarwinBox, ShieldSquare, Siliconch Systems, Singularity Dynamics, SmarterBiz, and Steradian Semiconductors. The portfolio continues to be healthy and these companies are on a growth path despite the current pandemic situation.
Building on the track record, Fund II will invest Rs 3 Crores to Rs 10 Crores per round in emerging deep tech start-ups from SaaS to SpaceTech including the areas of Cyber Security, Silicon IP, HealthTech, FinTech, AgriTech, and AI/ML.
The Investor base includes successful Tech Entrepreneurs, HNI’s, and Family offices. Despite the pandemic affecting the broader sentiment, several of the existing Investors participated with higher commitments.
Mr. B.V. Naidu, Managing Partner, StartupXseed, commented, “In Fund II, we will continue to focus on Deep Tech companies with capital-efficient business models. Our strategy has worked out very well in the Fund I and is reflected in the performance. Over these years, we have built a team, quality deal flow network, deal evaluation framework, post-investment hand-holding and demonstrated exits.”
Commenting on the occasion Mr. T.V. Mohandas Pai said, “StartupXseed has found its niche and unique positioning amongst venture funds. It will continue to build on its Fund I performance. India is today at the cusp of building technology innovations and start-ups are at the core of it playing a pivotal role and Venture funds like StartupXseed catalyzes the growth of these start-ups.”
Mr. Ravi Thakur, Co-founding Partner, StartupXseed, said, “We have been investing in good companies even during the COVID–19 and the horizon is looking good for investment with many advanced technologies being developed locally. With this new landscape, Fund II will continue the momentum to find exceptional leaders working on the greatest of ideas.”
Jayant Paleti, Co-Founder, DarwinBox, (StartupXseed Fund I Portfolio Co) said “The StartupXseed team has demonstrated great commitment towards the startup ecosystem and have always kept the interests of founders at the forefront in every decision they make. They have exhibited great sensitivity & care while working with us and we have benefited immensely from their involvement.”