India: StartupXseed launches $26.6m second fund to invest in deeptech firms

Bengaluru-based StartupXseed Ventures has launched its second fund of 200 crore, that will focus on early-stage investment in start-ups focused on deep technologies.

The sector agnostic seed and early stage venture capital fund was founded five years back by B. V. Naidu, former director, Software Technology Parks of India, Mohan Das Pai, co-founder of Aarin Capital, Ravi Thakur and other entrepreneurs. Out of 200 crore, 65 crore has been raised from individual technocrats and the balance amount will be raised over the next 6-9 months.

Fund II will invest 3-10 crore per round in emerging deep tech start-ups from SaaS to Spacetech including cybersecurity, silicon IP, healthtech, fintech and agritech and AI/ML.

“In Fund II, we will continue to focus on Deep Tech companies with capital efficient business models. Our strategy has worked out very well in Fund I and is reflected in the performance. Over these years, we have built a team, quality deal flow network, deal evaluation framework, post investment hand-holding and demonstrated exits,” said B.V. Naidu, Managing Partner, StartupXseed.

Naidu feels that deep tech and B2B has been less impacted by covid and given their past performance they will continue to focus on deep tech, adding a few more verticals.

“We were looking at seed stage funding in fund 1, and in fund 2 will look at seed to early growth stage so we will pick up little bit more equity… the horizon is looking good for investment with much advanced technologies being developed locally,” said Ravi Thakur, co-founding partner, StartupXseed.

“StartupXseed has found its niche and unique positioning amongst venture funds. It will continue to build on its Fund I performance. India is today at the cusp of building technology innovations and start-ups are at the core of it playing a pivotal role and Venture funds like StartupXseed catalyses the growth of these start-ups,” said T.V. Mohandas Pai,co-founder Arin Capital.

This article was first published on livemint.com.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.