StartupXseed launches second fund of Rs 200 Cr for deep tech startups
Bengaluru-based StartupXseed Ventures has announced a Rs 200 crore Fund II, that will focus on early-stage investment in deep tech startups. Of the Rs 200 crore, Rs 65 crore has been raised from individual technocrats and the balance amount will be raised in the next six to nine months.
StartupXseed Managing Partner BV Naidu said,
“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 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.”
Founded by BV Naidu (Former Director STPI) and Ravi Thakur along with TV Mohandas Pai (through Aarin Capital), V Balakrishnan, and other like-minded leaders from the industry, the fund has invested into 12 deep tech companies and also exited three investments.
According to the firm, Fund I returned 35 percent of principal much before it had completed the final draw down and investment cycle.
The Fund I investments include companies like Aarav Unmanned Systems (AUS), AIBono, Anlyz, AlphaIC, Bellatrix, CloudSEK, DarwinBox, ShieldSquare, Siliconch Systems, Singularity Dynamics, SmarterBiz, and Steradian Semiconductors.
Fund II will invest Rs 3 crore to Rs 10 crore per round in emerging deep tech startups from SAAS to space tech including areas of cybersecurity, Silicon IP, healthtech, fintech, agritech, and AI/ML.
The investor base includes successful tech entrepreneurs, HNIs, and family offices. Despite the COVID-19 pandemic affecting the broader sentiment, several of the existing investors participated with higher commitments.
Commenting on the development, TV Mohandas Pai said,
“StartupXseed has found its niche and unique positioning among venture funds. It will continue to build on its Fund I performance. India is today at the cusp of building technology innovations and startups are at the core of it playing a pivotal role and venture funds like StartupXseed catalyses the growth of these startups.”