5 VC Firms for Early Stage Startups in India

Over the past decade, the business landscape in India has seen startups in various sectors grow and thrive. New technologies, innovations and investments have fueled the ecosystem, creating jobs and inspiring more entrepreneurs to take the big leap, and India is now the third startup ecosystem in the world after the US and China

The year 2021 was a turning point year for equity (PE) and venture capital (VC) investments in India. In 2021, Indian startups raised a record $42 billion in 1,583 deals, and 42 startups joined the unicorn club. Early stage or early stage funding alone exceeded $1 billion in India.

However, going from a disruptive idea to a successful startup isn’t an easy task—from founders rolling up their sleeves to investors who believe in their mission—it’s a journey of will and will.

In the early stages of a startup, a VC’s support can prove to be a point or a breaking point for many startups. And early stage or early stage financing is generally when venture capital financing often begins. At this stage, the inflow of capital will help entrepreneurs with market research, product development and business expansion – the foundation of any successful business venture.

In today’s list, YourStory has compiled a list of venture capital firms that enable new-age startups to grow and scale with early-stage and seed-round investments.

YourNest Venture Capital

General Partners of YourNest

YourNest Venture Capitallocated in gurugramis an early-stage fund focused on deep-tech areas such as: IoT, AI, Robotics, Digital Products, Edge Cloud, AR/MR/VE, Dev. Tools and business segments.

It provides a secure startup ecosystem where early stage startups are nurtured and given the required skills to scale and grow.

The company aims to provide Indian founders with the opportunity to scale to global markets with IP-led innovation. They also support founders with ‘Nurture Capital’ with an established network of professionals, advisors, mentors, innovators and business leaders, also providing a support ecosystem for any startup whose business is validated by clients.

Blume Ventures

Blume Ventures Co-Founders & Managing Partners Karthik Reddy (L) and Sanjay Nath

Founded in 2010 by Karthik Reddy and Sanjay Nath, based in Mumbai Blume Ventures is an early stage VC firm that finances startups that solve difficult problems.

Blume Ventures partners help founders achieve product-market fit and strength beyond the first scale point. The startup aims to invest in financial services, information technology, manufacturing, blockchain, cybersecurity, e-commerce, B2B payments, gaming, TMT, mobile commerce, cannabis, business services, business products, consumer services and technology-based sectors in India.

They invest in startups with a strong technical backbone, such as companies backed by intellectual property or code. It has a special learning experience for B2B companies and enterprises that are capital light. Some of the startups they have invested in include Cashify, Unacademy, Exotel, LBB Purplle, Locus among others.

They invest for the long term and remain invested for between eight and ten years, and as long as the founders invest equally in the ambition of the company.

3one4

3one4 Capital Managing Partners: Pranav Pai (left) and Siddarth Pai

Founded in 2016 by Pranav Paic and Siddarth Pai, based in Bengaluru 3one4 Capital is an early stage venture capital fund. The company works in select market categories and focuses on areas such as machine-driven actionable intelligence for edtech, SaaS, consumer products and services, business automation, fintech, entertainment and health.

The deep engagement strategy fund works with founding teams and subject matter experts to prioritize and strategize to connect the product market, and optimize for resilience and growth in revenue and impact.

It focuses on margins and on delivering uncompromising end-user experiences. The fund aims to detect new growth opportunities, reduce risk and return rewarding results to all stakeholders involved.

The company’s investment includes: fair centLiciousShow tagTracxnDarwin boxbetter placebug worksand tripoto

Aavishkaar venture capital

Founded in 2001 by Vineet RaiMumbai based Aavishkaar venture capital provides micro-equity financing and operational and strategic support, and is also known for his dissertation on impact investing, which can create significant value for both investors and society.

It follows a multi-stage seed-and-harvest investment strategy that supports companies across the growth spectrum, from seed stage to scale stage, while building a portfolio with a balanced risk-return profile.

The venture capital firms focus on sectors such as agritech, agriculture, financial inclusion and essential services such as education, logistics and healthcare.

It has invested in portfolios such as AgroStar, Milk Mantra, Chqbook, Soulfull and PayWell, among others.

India Quotient

India Quotient Leadership Team (from left): Anand Lunia, Co-Founder, Madhukar Sinha, Co-Founder and Gagan Goyal, Partner

Founded in 2012 by Anand Lunia and Madhukar Singha, based in Bengaluru India Quotient is an early stage venture capital fund. It believes that the pursuit of digitization, where companies increasingly rely on technology or software for their business operations, will become mainstream,

The venture capital firm has invested in sectors such as travel, fashion, consumer finance, food, education and mobile and startups such as roposoWarehouse, PrettySecretsFRSH, and DogSpot

It has invested in a number of agriculture-related startups, such as Bharat Agri and Lean Agri.

They invest in a paper stage so entrepreneurs can skip the angel round.

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