B Capital Closes Third Venture Fund At $2.1 Bn

SUMMARY

The fund is focused on the US and Asia, including India, and will invest $40 Mn to $50 Mn in startups

In August 2022, B Capital closed $250 Mn Ascent Fund II to invest in early-stage startups in the US and Asia

The announcement comes at a time when Indian startups are grappling with a funding crisis and have resorted to layoffs to cut costs

US-based investment firm B Capital on Thursday said it has closed its third venture growth fund and allied companion funds called ‘Growth Fund III’ at $2.1 Bn.

The fund is focused on the US and Asia, including India, and will invest $40 Mn to $50 Mn in startups in sectors such as enterprisetech, fintech, healthtech, SaaS and cybersecurity.

“Growth Fund III’s portfolio includes companies that are transforming their respective industries and generating meaningful impact. Our strategic partnership with Boston Consulting Group and strong on-the-ground presence in key geographies enable us to provide our portfolio companies with targeted insights and expert advice,” said Facebook cofounder Eduardo Saverin, who is also the cofounder and managing partner of B Capital.

The fund will leverage B Capital’s investing capabilities across the globe, especially the US and Asia, the firm said in a statement.

Founded in 2015 by Howard Morgan, Sheila Patel, Saverin and Raj Ganguly, B Capital invests in seed to late-stage startups.

“Our emphasis on value-add investing, supported by our platform advisors and strategic partnership with BCG, enables us to accelerate business development and growth across our portfolio. This approach drives a high-performance investment model, which we will continue to apply to the Growth Fund III series,” said Ganguly.

In August 2022, B Capital closed $250 Mn Ascent Fund II to invest in early-stage startups based in the US and Asia.

The announcement comes at a time when Indian startups are grappling with a funding crisis and have resorted to layoffs to cut costs. However, investment firms seem bullish about Indian startups and have launched multiple funds in the last year or so.

According to Inc42 data, 126 new funds were announced and launched in 2022 by VC funds, angel funds, debt funds, micro funds, among others. These funds cumulatively garnered over $18 Bn from limited partners.

Meanwhile, investment firm Zero To One is amongst those firms which announced new funds in 2023 so far. Besides, Prath Ventures, Lighthouse Canton, and Dallas Venture Capital also announced the first closure of their respective funds earlier this month.