Prime Venture Partners Raised $ 75 Million For First Close Of Fourth Fund
Investors or sponsors of the new fund include the World Bank’s International Finance Corporation, University Endowment, several family investment offices and institutions, and global technology entrepreneurs. The fund declined to disclose details of its other LPs.
“We look forward to closing the fund in a few months,” said Shripati Acharya, co-founder and managing partner of Prime Venture Partners.
The Bengaluru-based venture capital fund, which typically invests between $ 500,000 and $ 1 million, could increase the size of the ticket with the fourth fund in a record-breaking fundraiser by Indian startups. About $ 20.76 billion has been raised in 583 deals by Indian startups as of August 20, ET reported on August 23, citing data from Venture Intelligence.
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Prime Venture Partners raised its third fund of $ 72 million in 2018, its second fund of $ 46 million in 2015 and its first fund of $ 8 million in 2012.
These are engaged in 32 companies, including security and community management platform MyGate, healthcare technology startup MFine, remote patient monitoring startup Dozee, and neobank Niyo.
“We have earmarked half of the new fundraising for new investment, while the rest will go to supporting these businesses with follow-on capital,” Acharya said. “You will start to see releases from our vintage funds over the next two quarters.”
Prime Venture Partners was created by Acharya and Sanjay Swamy in 2012. In 2015, Amit Somani joined as a partner. The fund is now seeking to add an additional partner to strengthen its top management.
The Bengaluru-based company typically invests in industries such as fintech, edtech, healthcare, consumer internet, and global software as a service. With the new fund, Prime plans to expand into new areas, including decentralized finance (DeFi) in the space of cryptocurrencies, electric vehicles and gaming.
“The rapid pace of digitization over the past two years has brought these sectors to the fore and we believe they will experience tremendous growth in the future,” Acharya said.
Venture capital boom
Prime’s new fund comes at a time when a growing number of India-focused funds are raising larger corpora to fuel the country’s burgeoning startup ecosystem. The increase in transaction flows is mainly due to high liquidity in the ecosystem of venture capital and hedge funds. Many investors are turning to high quality transactions leading to big rounds of funding in these industry leaders, which leads to bigger checks.
Driven by the cash rush, many domestic and India-focused dollar funds are poised to raise larger funds. The funds supporting start-ups are finding more and more takers.
Funds such as Chiratae Ventures, Iron Pillar, Avataar Venture Partners, Avendus Capital, India Quotient, Orios Venture Partners, Inflexor Ventures, Alteria Capital, Trifecta Capital, IIFL Special Opportunities Fund are among those that have recently closed or are in the process of closing. raise a larger fund focused on India.
Funding frenzy spurs start-ups in India
According to the Bain & Co. private equity and venture capital report released earlier this year, a corpus of $ 6 billion is waiting to be invested in the Indian market. That, the global consultant said, would drive strong investment activity through 2021 and beyond.