SUMMARY
With a focus on pre-Series A stage companies in deeptech, cleantech, B2B tech, logistics, and others, the category II AIF will invest in startups with a valuation within INR 100 Cr
CapFort Ventures' maiden fund will have a ticket size between INR 2 Cr and INR 6 Cr, with the average being INR 3 Cr–INR 3.5 Cr
The VC fund expects the first close of the fund by the end of this year
Micro VC fund CapFort Ventures has launched an INR 200 Cr India-focussed tech fund and plans to invest in 40 startups in the next two years. It will choose startups from sectors including deeptech, cleantech, B2B tech, logistics, healthtech and other impact-oriented sectors.
With a focus on pre-Series A stage companies, the category II alternative investment fund (AIF) will invest in startups with a valuation within INR 100 Cr. The ticket size will range from INR 2 Cr to INR 6 Cr, with the average being INR 3 Cr–INR 3.5 Cr, said CapFort Ventures.
The VC fund is spearheaded by industry leaders such as Abhimanyu Bisht, the former CEO of Venture Catalysts, and founder of Hiraco Ventures and angel investor Kavit Sutariya. Bisht and Sutariya have cumulatively invested in more than 200 startups so far and both will serve as the general partners of CapFort Ventures.
“At CapFort, we are forward-looking; our objective is to provide not only financial support but also invaluable guidance and mentorship to help entrepreneurs turn their vision into reality,” said Bisht, general partner at CapFort Ventures. Bisht has earlier invested in startups including Zingbus, Basic Home Loan, InShorts, and Sheru.
The VC firm wants to identify and invest in tech startups that have the potential to transform and reshape the Indian technological landscape. It said that it would actively collaborate with its portfolio companies, providing founders with hands-on mentorship, and assisting the startups in scaling and attaining sustainable growth.
CapFort Ventures expects the first close of the fund by the end of this year. A green shoe option of INR 100 Cr will also be available if there is additional interest from investors. The VC firm is looking to source a majority of the capital from domestic investors, with participation from institutional investors, family offices, and ultra HNIs.
“As the third-largest startup economy, India has demonstrated the potential to be a superpower in innovation and profitability. By investing in high-potential technology startups, we aim to help disruptive entrepreneurs push the envelope of technological innovation which drives India’s next decade of growth,” said Sutariya, general partner at CapFort Ventures.
Sutariya has invested in more than 72 startups including Wellness Forever, Reshamandi, Chqbook, Melorra, Karkinos, Ketto, Inc42, FarEye, and Zingbus.
Meanwhile, a funding crunch continues to batter the Indian startup ecosystem. As per Inc42’s ‘Indian Tech Startup Funding Report H1 2023’, domestic startups raised $5.4 Bn in total funding in H1 2023 as against $19 Bn in the same period last year. The total deal count also dropped to 462 in H1 this year from 900 in H1 2022 and 617 in H2 2022.
