Early-stage investment firm Venture Catalysts plans to end FY25 by investing in 35-40 startups, with focus on cutting-edge sectors like space tech, defence tech, advanced manufacturing and artificial intelligence (AI).

Apoorv Ranjan Sharma, co-founder and managing director, said the firm sees AI as a transformative force across industries such as healthcare, finance, agriculture, and education. “We are particularly interested in deeptech, including quantum computing, blockchain and advanced materials,” Sharma said.

Venture Catalysts, which manages a portfolio of over 400 startups valued at nearly $12 billion, typically invests $250,000 to $1 million in early-stage companies. The firm also offers mentorship, networking and strategic guidance to its portfolio companies. The company’s portfolio includes BharatPe, BluSmart, Beardo, Ambee and Zypp.

Venture Catalysts is optimistic about growth in fintech, health tech, D2C brands, agritech, edtech and cleantech. These sectors, Sharma said, present opportunities for technology-driven innovation, particularly in semi-urban and rural markets. The firm operates five early-stage and sector-specific funds, with investments ranging from $10-25 million.

The company has identified several trends influencing its investment strategy, such as AI-driven innovations, sustainability-focused solutions and the untapped potential of startups in tier 2-5 cities. The firm is also witnessing an increased corporate interest in startup collaborations through partnerships and venture capital initiatives.

Sharma acknowledges challenges such as economic uncertainties, intense competition for quality deals and the need to stay updated with rapid technological advancements. “In crowded sectors, finding truly innovative and scalable businesses is tough. Retaining top talent is another challenge in today’s market,” he said.

Despite these hurdles, Venture Catalysts is poised to strengthen its position as a leading early-stage investor, driving growth in India’s dynamic startup ecosystem.