India: 1Crowd marks first close of its maiden venture fund at $3.5m

Photo: Reuters

Early-stage investment firm 1Crowd on Wednesday announced the first close of its maiden venture capital fund at Rs 23 crore ($3.5 million).

The fund is targeting a corpus of Rs 75 crore ($11.5 million) including a greenshoe option of Rs 25 crore.

Founded in 2015, the Mumbai-based investor started off as an equity crowd funding platform. It now provides funding options from seed to pre Series A spectrum, incubation programs and virtual acceleration programs.

1Crowd  has completed over 15 investments, including participation in three follow-on rounds for its investments. Some of its portfolio companies include fintech firm Creditas Solutions, healthcare startup Idea Bubbles, nano-technology company Nanosniff Technologies and enterprise technology firm Nuvepro.

With its venture capital fund, 1Crowd is able to co-invest with the equity crowd funding platform, with the ability to anchor each investment with 30-50 per cent of the total funding round.

“The fund would invest in tandem with 1Crowd’s equity crowdfunding platform, building a diversified portfolio. Fund investors may co-invest via the platform at inception and in subsequent rounds, growing positions in portfolio companies that are successful,” said Anil Gudibande, Co-founder of 1Crowd.

The sector-agnostic fund aims to invest in around 20 companies, with plans of cutting initial cheques of around $500 million, which could increase in subsequent rounds for some of its investee companies.

While early stage investments have tapered over the last one year, venture capital firms are still piling up the dry powder. Recently Delhi-based early-stage investor WaterBridge Ventures reached the final close of its maiden venture capital fund at $30 million. Prior to that, Bengaluru-based venture capital firm 3one4 Capital closed its second fund with commitments for $39 million and pi Ventures marked the second close of its $30-million maiden fund at $25 million.

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