VC firm Equanimity Investments has teamed up with Sanctum Wealth Management to launch a $15.4 Mn (INR 100 Cr) debt venture capital fund targeting early stage startups. As stated by Equanimity founder Rajesh Sehgal in an interaction with Inc42, the fund will come with a greenshoe option of an additional $15.4 Mn (INR 100 Cr).
The partnership will allow Sanctum’s clients, including HNIs and family offices, to diversify their investment portfolios by backing promising tech startups in the country. As per reports, the fund has raised $9.2 Mn (INR 60 Cr) so far.
Commenting on the development, Prateek Pant, Head of Products and Solutions at Sanctum Wealth Management said, “India’s startup ecosystem ranks third globally and is expected to grow dynamically in the next few years. The Indian government is encouraging development in this space through its proactive initiatives. The scope within the industry is immense and we are excited about the opportunities that could follow for clients.”
Early backers of the debt venture capital fund include Mark Mobius of Templeton Emerging Markets Group and Vijay Advani, President and COO of TIAA Global Asset Management.
The fund, according to Sehgal, will be used to back 20 early stage tech startups across sectors. Equanimity is primarily looking invest in companies with innovative business models that are engaged in the development of new products or services.
He added, “The focus is tech-enabled companies. By that, what we mean is technology should help the business scale up rapidly. Secondly, the technology should ensure a sustainable business model. So essentially, we are looking at Pre Series A and Series A firms that are using technology to bring in scalability and sustainability.”