SUMMARY
The angel fund will back early-stage Indian startups focused on domestic and international markets
It will write off cheques between INR 3 Cr to INR 5 Cr in 30-35 early-stage startups in the next three years
Despite being sector-agnostic, it will primarily focus on startups working in healthcare, fintech, education, B2B SaaS, enterprise tech, and D2C, among others
Venture capital company, ah! Ventures has launched an alternative investment fund (AIF) angel fund that has a corpus of around $14 Mn (INR 100 Cr). The fund also has a green shoe option of INR 50 Cr.
The sector-agnostic fund will back early-stage Indian startups focused on domestic and international markets. The fund is anticipated to be closed by the next 60 days.
Further, the fund will write off cheques between INR 3 Cr to INR 5 Cr in 30-35 early-stage startups in the next three years.
Despite being sector-agnostic, the maiden angel fund will primarily focus on startups working in healthcare, fintech, education, B2B SaaS, enterprise tech, and D2C, among others.
“Over the last few years, homegrown startups with a local focus and global approach have been the game-changers for the Indian economy. However, we are yet to witness the full potential of thousands of budding startups. Our Angel Fund aims to do just that – substantially propel those next big ideas and help them take the leap” said Amit Kumar, partner, ah! Ventures Fund.
Mumbai-based venture capital firm ah! Ventures has backed several early-stage startups across 25 sectors. Its investment portfolio, which includes Testbook, Inc42, NewsBytes, Bolo Live, Ketto, Expertrons, and Text Mercato, is worth over $37 Mn. Of this, it has exited 14 startups and made follow-on investments in 28 startups.
“We are firm believers in creating value. Through the years of enabling and mentoring startups, we have had the privilege to understand the pulse of these daring entrepreneurs. There is no greater satisfaction than a startup living up to its promise and spreading value far across. So, we have taken a value-focused and futuristic approach for this fund as well,” Abhijeet Kumar, partner at ah! Ventures, said.
So far in 2022, ah! Ventures has made 30 capital infusions in startups, according to the company.
The fund comes at a time when Indian startups are witnessing a funding winter. According to an Inc42 report, startups’ funding activities witnessed a steep decline of 53% MoM to $1.6 Mn in the previous month (May). Impending recession, low investor sentiments, spiking federal interest rates and geopolitical tensions are some of the prime reasons for funding winter.
Despite the slowdown in the startup ecosystem, a slew of VC funds are optimistic about the market and consequently, launched their VC funds to back growth and early-stage startups.
Some of these VC funds are Bertelsmann India Investments’ $500 Mn fund, All In Capital’s fund, Sanjay Nayar’s fund and Anicut Capital’s Anicut Opportunities Fund I.
