SUMMARY
The founders fund will carve out 1-2% of its core investment fund, but will be distinct from it
The fund will invest a range of $25K to $100K depending on the size of the round and will be open to follow-up investments
Blume Ventures was the fifth-most active venture capital firm in India in 2020, with 14 deals
Early-stage venture capital firm Blume Ventures has announced the launch of a ‘Blume Founders Fund’ through which it has invested in five companies so far. These include short video app Chingari, fintech platform Indiagold, lifestyle DTC brand Monrow, an undisclosed autonomous robotics venture and an undisclosed fintech venture.
Blume Ventures has elaborated that the fund will carve out 1-2% of the VC’s core investment fund, but will be distinct from it in terms of the investment size. Under this programme, the early-stage investor will invest a range of $25K to $100K depending on the size of the round and will also reserve capital to invest beyond this first cheque.
The fund will be managed by Sarita Raichura, who recently joined Blume from Indian Angel Network, and mentored by partner Sanjay Nath. Blume is looking to invest in 12-15 founders through this fund, which was started in the last quarter of 2020.
The early-stage investment firm is looking to strengthen its network and build a long-term relationship with “great” founders through this fund. Besides this, it also aims to help out advisors who have been working with Blume to invest in entrepreneurs.
Nath elaborated, “Founder journeys are about taking the long road, and all start with relationships and trust established early on with their investors. We are excited to bring Blume’s aggregate brand value, networks and knowledge base to help our Blume Founders Fund cohort build, hire, collaborate and scale. With 2020 continuing to fuel the rise of entrepreneurship, the new year is a great time to launch this Fund and partner more closely with new Indian founders starting up.”
In 2020, Blume Ventures was the fifth-most active venture capital firm in India, trailing behind Sequoia Capital, Accel Partners, Tiger Global and Matrix Partners. The early-stage investor cracked 14 deals this year, including Medfin, smallcase, Pixxel, Lambda Test and others. Overall, it has invested in more than 150 companies in India including Unacademy, Dunzo, Milkbasket, Yulu, Servify and LBB.
The investment firm had announced the final close of its fund III at $102 Mn, right before India stepped into the Covid-19 induced lockdown and restrictions. The fund was raised from anchor investors in India, US, Japan and Asia, along with existing limited partners who have invested in the firm’s previous funds. It is looking to invest in 25 to 30 early-stage startups through this fund.
