CapFort Ventures has launched a Rs 200 crore India-focused technology fund with a plan to invest in over 40 startups over the next two years. The fund, which expects a final close by the end of 2023, has a greenshoe option of Rs 100 crore in case of additional interest from investors.
The micro venture capital fund will focus on pre-Series A startups with valuations of less than Rs 100 crore. The check size will range from Rs 2 crores to Rs 6 crores, with the average being Rs 3–3.5 crores.
Spearheaded by Abhimanyu Bisht (former CEO of Venture Catalysts) and Kavit Sutariya (founder of Hiraco Ventures), the fund aims to invest in startups across DeepTech, CleanTech, B2B Tech, Logistics, HealthTech and other impact-oriented sectors.
“We are confident in our ability to identify ground-breaking tech startups and guide them towards sustainable growth,” said Abhimanyu Bisht, General Partner, CapFort Ventures.
As angel investors, Bisht and Sutariya have invested in over 200 startups, including the likes of Reshamandi, Chqbook, Melorra, Ketto, FarEye, Pidge, Zingbus and
TrueMeds.
“As the third-largest startup economy, India has demonstrated the potential to be a superpower in innovation and profitability. With the launch of our Rs 200 crore tech-focused fund, we are excited to be part of this journey of skyrocketing growth and evolution,” said Kavit Sutariya, General Partner, CapFort Ventures.
With the new fund, CapFort Ventures has joined the likes of Blume Ventures, Epiq Capital, Good Capital and Avaana Capital, who have raised fresh India-dedicated funds over the last few months, adding more dry-powder for startup investments in the country.
Since last year, some of the larger VCs such as
Sequoia Capital India (now Peak XV), Accel India and Matrix Partners India have also replenished their funds, but the deployment of an estimated $16 billion worth of dry powder is yet to gain pace as global uncertainty prevails and fragility of startup finances stand exposed.
In the first half of 2023 i.e. January to June, Indian startups suffered their worst funding period in four years, with venture capital investments barely touching the $4 billion mark. That’s nearly five times lower than the $18.4 billion secured during the same period in 2022.
In fact, June 2023 recorded the lowest funding levels since August 2020—a 34-month low.
