AdvantageClub Backer Sprout Venture Partners Marks First Close Of Second Fund At $10 Mn

SUMMARY

Sprout, which counts Pixis and AdvantageClub in its current portfolio, aims to raise another $5 Mn for the second fund

The second fund will be invested across 12 to 15 startups with an average cheque size of $500K

Sprout’s cofounder and managing partner Sahil Gupta said the firm’s first fund has made a few exits and is on course to deliver “top quartile” returns

Early stage venture capital firm Sprout Venture Partners has marked the first close of its second fund.

The firm, which counts Pixis and AdvantageClub as among its current portfolio, has raised close to $10 Mn as part of its second VC fund.

The Securities and Exchange Board of India (SEBI)-registered fund also aims to raise an additional $5 Mn by mid of next year.

As per a report by ET, the fund raised about $5 Mn as a part of its first round which was deployed across 13 early-stage startups.

Established in 2017 by Sahil Gupta and Sunil Jain, Sprout invests in budding startups.

“We have made a few exits (from the first fund) and it is on course to deliver top quartile returns. We will continue to invest with the same strategy in Fund II, but with a higher initial cheque size and more follow capital,” said Sprout’s cofounder and managing partner Gupta.

He further added that the second fund will be invested across 12 to 15 startups with an average cheque size of $500K. Sprout will majorly focus on the pre-seed to pre-Series A rounds.

The announcement comes at a time when a number of new India-focussed funds have been launched over the last few months, despite the ongoing funding winter. Recently, yet another fund closure was announced by Pantomath Financial Services Group. It marked the final close of its pre-IPO fund, India Inflection Opportunity Fund (IIOF), at INR 500 Cr ($60 Mn).

Paytm chief Vijay Shekhar Sharma also launched VSS Investment Fund to back homegrown AI and EV related startups. The fund will have a corpus of INR 20 Cr with a greenshoe option of INR 10 Cr.

Fintech startup InCred also launched its maiden fund InCred Credit Opportunities Fund-I with a corpus of INR 660 Cr. InCred has already invested in 23 startups from the fund, including Blue Stone, Stellar Value Chain, Entero Healthcare, and MoneyWise, and is aiming for returns of 16-18%.

According to Inc42’s analysis, 46% of the total funds announced this year solely focus on early stage startups, with about $5 Bn worth of capital is meant specifically for the homegrown ones.