Nexus Venture Partners has announced to close its fourth round of funding of over $450 million, making its total capital under management in eight years to over $1 billion. The capital commitment came from long-term Nexus investors who partnered with them in previous funds that include endowments, foundations, and financial institutions across North America, Europe and Asia.
“We are thankful to our investors that continue to back us and believe in our investment philosophy. Most significantly, the Nexus team is fortunate to have exceptional entrepreneurs partner with us on their journey to build market leading companies,” said Naren Gupta, co-founder and MD, Nexus Venture Partners.
This round of fund comes three years after it raised $270 million in its third fund in 2012. Nexus invests in both seed and early stage companies that claim to disrupt consumer retail, financial services, healthcare, etc. It has invested in more than 60 companies till now and with the recent fund plans to accelerate its hunt of prospective companies. Apart from Nexus, other India focused venture capital firms are flexing their muscles and have raised new funds this year to invest in the fast growing tech space in India.
With as much as $800 million India focused fund Sequoia has raised the largest war-chest this year. It formally registered a new investment firm Sequoia Capital India V with the US capital market regulator Securities and Exchange Commission (SEC) in November to invest in India.
Even though funding in Series A and B stage has squeezed in terms of size and investors are getting cautious, early and late stage stable companies are still able to attract VC money.
“Everyone including LPs want to invest in a hot company, but they are already invested by more than two or three VCs. To grab a share of these highly sought after companies LPs invest in these investment firms which is a win-win situation for both. This is one of the reasons why India focused VC firms have been able to raise money in the last 24-30 months,” said Ashish Fafadia, CFO, Blume Ventures.