Early-stage venture capital firm Fundamental VC, founded by startup executives, has launched its debut fund of $130 million.
The fund will invest up to $1.5 million in each startup and aims to support 30 startups over a period of two years in sectors ranging from consumer internet to healthcare, insurance, financial services, SaaS, gaming and AI, among others.
The announcement comes as fundraising in India fell consecutively for the second quarter, with Indian startups raising $12 billion across 517 deals in the first quarter of 2022, according to DealStreetAsia’s proprietary data. This is a dip of about 12% in value over Q4 2021 but almost three times that of Q1 2021, thus hinting at positive market sentiments.
“During the ongoing funding cycle, being termed as “the funding winter”, Fundamental VC sees an excellent opportunity to partner with the most promising and visionary founders,” the company said in a statement.
The founder duo — Saswat Sundar and Abhishek Rathi — have previously worked in organisations including Citibank, OYO, Stashfin, Velocity and LetsVenture, and claim to have dealt with pre-PMF to growth-stage challenges.
In their individual capacity, they have invested in 20+ ventures across sectors, including Agnikul, Kenko, TradeX, BluSmart, StockGro, Dukaan, Elo Elo and Redcliffe Lifescience.
Fundamental VC said it aims to offer a term sheet within a week and deploy capital within one month from the closure of the deal, to eliminate one of the biggest pain points for founders in the fundraising process.
“To focus on the sustainable growth and success of each startup in our portfolio, we have a highly curative investment strategy, wherein we will invest in a limited set of businesses with sound fundamentals instead of a spray-and-pray approach,” Sundar said.