Prominent early-stage venture capital firm Unicorn India Ventures has launched its fund for early-stage startups with a total corpus of Rs 400 crore.
Prominent early-stage venture capital firm Unicorn India Ventures has launched its fund for early-stage startups with a total corpus of Rs 400 crore. The first close of Rs 150 crore is expected to be closed by the end of 2019, its Managing Partner Anil Joshi told Financial Express Online.
Fund II will invest in pre-Series A and Series A stage startups in sectors such as B2B software-as-a-service, fintech, health tech, robotics, gaming and digital content. The capital will be raised from institutional and large family offices in India and overseas. Unicorn India would begin investing from the new fund by this year-end.
“We are looking to raise the entire corpus within next year. While from the first fund, we cut cheques of Rs 1-2 crore for seed stage funding but with the new fund we will do Rs 3-5 crore funding initially that can go up to Rs 25-30 crore in the follow on rounds,” said Joshi.
Lack of Series A deals is an issue as startups that get to pre-Series A jumps to pre-Series B or raise a bridge round while it is not easy for them to do that. We expect to fill this Series A gap, he added.
Unicorn India would also be doing some seed investments while the overall portfolio from the new fund would have a blend of 20-24 companies with 60 per cent of the portfolio is expected to perform well with subsequent Series B or C rounds and growth.
The second fund comes four years after the Unicorn India launched its first fund in 2015 beginning with backing startups in consumer internet, on-demand services, media tech etc. including SmartCoin, Sequretek, Pharmarack, Genrobotics, Openapp etc.
The VC firm had last year announced a UK-India cross border fund with the UK-based early stage fund AscensionVentures.
Indian startups raised $405 million across 77 deals in the first half of 2019 at Series A round while $560 million was invested in 51 deals at Series B round, as per data from Venture Intelligence.