Full service insurance broker Equirus has launched a $25 million Equirus InnovateX Fund (EIF) to invest in seed-stage tech startups, it announced on Thursday. The fund will primarily back business-to-business (B2B) startups in software-as-a-service (SaaS), deeptech, fintech, and other emerging sectors. Equirus said $500,000 to $1 million will be invested in 15-20 companies showcasing “proven track record of sustainable business models, strong monetization strategies with capabilities of solving critical problems in large addressable markets.”
“Post 2022, there has been a discernible shift in investment approach. We expect this recalibration in venture investing to continue. Capital deployment will remain cautious and favour sustainable business models with robust monetization potential,” said Sunder Nookala, Early-Stage VC, and Head Tech & Digital at Equirus.
The company provides full-service investment banking services for corporate clients and offers services covering equity capital markets, debt capital markets, structured finance, PE, M&A, insurance broking, and wealth products.
Equirus has done over 240 transactions across M&A, PE, IPOs, QIPs, Rights Issues, and Structure Finance raising $10.6 billion in the process.
Amid a tighter environment for funding, enterprise/SaaS, deeptech and e-commerce founders had the most favorable funding experience last year and in 2024, SaaS and fintech founders continue to be the most optimistic among founders seeking fundraise, as per a report by debt firm InnoVen Capital India recently.
Earlier this month, revenue-based financing platform Velocity had announced a Rs 300 crore fund to provide growth capital to B2B SaaS startups. In December last year, SenseAI Ventures had launched its Rs 200 crore SenseAI Fund I to invest in 18-20 AI-first startups and make follow-on investments in promising startups from its portfolio. Likewise, deep technology VC firm Java Capital in October had announced the final close of its Rs 50 crore fund to back startups in deep tech, climate tech, and B2B segments.