IAN's Alpha Fund announces first close, secures Rs 355 Cr

Indian Angel Network's (IAN) Alpha Fund—a venture capital fund with a corpus of Rs 1,000 crore ($119 million)—announced its first close at Rs 355 crore. 

It is the second VC fund in IAN Group’s series of funds, with the first close being higher than the target corpus of IAN Fund I. Besides several investors from IAN Fund I, marquee investors like SIDBI (Small Industries Development Bank of India) and SRI Fund also participated in the Alpha Fund.  

“Startups are the key engines for employment and economic growth in India, finding solutions for many of our challenges, by leveraging technology and innovative business models. The Alpha Fund will be instrumental in achieving our vision of investing in over 500 startups and creating 50,00,000 jobs by 2030, nurturing a thriving ecosystem,” said Saurabh Srivastava, Co-founder, Indian Angel Network.

Registered with SEBI under AIF Category II, the Alpha Fund aims to invest across cleantech, healthtech, fintech, deep-tech, spacetech, consumer, agritech, and robotics, among other sectors. 

According to a statement, it invested about 74% of the capital in companies that have raised more than 12 times the initial amount, showcasing the fund's ability to identify and nurture high-quality companies. The Alpha Fund also leverages the success of the IAN Angel Platform and IAN Fund I, with the latter's portfolio performing well and monies being returned to investors. 

The IAN Alpha Fund will further the IAN Group’s mission "to invest Rs 5000 crore in 500 startups to create 500,000 jobs and bring Indian innovation to global markets." The IAN Group has invested more than Rs 900 crore in over 250 startups, currently valued at over $9 billion (Rs 75,000 crore). 

IAN Group is India's largest platform for seed and early-stage investments, comprising IAN Angel Group, BioAngels, and IAN Fund I—the inaugural VC Fund in the series. This platform enables entrepreneurs to secure funding ranging from Rs 50 lakh to Rs 50 crore from investors who offer financial support, mentoring, and global market access.

The platform brings capital and mentoring from successful entrepreneurs and CEOs, funding startups across 19 sectors in India and seven other countries.