With a focus on investing in women-led ventures and non-metro founders, the fund will back startups across sectors like energy transition, agriculture, health and deeptech
With the latest fund, 3one4 Capital will look to back around 10-15 startups, with an initial ticket size of $500K each. The remaining corpus will be reserved for follow-on rounds
Notably, the VC firm has already begun deploying capital under this fund and has closed nearly five investments to date
Venture capital (VC) firm 3one4 Capital
has banded together with British International Investment (BII) to float a new $15 Mn (around ₹141 Cr) fund to back “under-represented” sectors and founders in the Indian startup ecosystem.
Called the IIDEA Fund, the newly launched fund will primarily focus on sectors such as energy transition, agriculture, health, deeptech and manufacturing. The corpus will also focus on investing in women-led ventures, non-metro founders and businesses addressing developmental gaps.
It is pertinent to note that the entire corpus amount has already been raised as BII joins as the sole LP (limited partner) for the new fund.
With this, 3one4 Capital will look to back around 10-15 startups, with an initial ticket size of $500K each. The remaining corpus will be reserved for follow-on rounds.
Notably, the VC firm has already begun deploying capital under this fund and has closed nearly five investments to date.
“We’re looking to address funding gaps across areas that have historically attracted limited capital. At the same time, we’re focused on backing under-represented founders, including women entrepreneurs and founders from tier II and tier III cities. We’ve created this pool of capital to invest deliberately in these overlooked sectors and founder communities,” partner at 3one4 Capital, Nruthya Madappa, told Inc42.
This comes at a time when the VC firm is gearing up to launch its fifth fund, with a likely target corpus of $225 Mn. Without confirming the total size of the upcoming fund, 3one4 Capital’s founding partner and chief investment officer Pranav Pai last month told Inc42 that the corpus will back early-stage startups across sectors like AI and SaaS, enterprise and manufacturing automation, fintech, deeptech and consumer internet.
Meanwhile, the investment firm claims to have so far backed 100+ startups and recorded 26 profitable exits across its earlier first two funds. Last year, the VC firm partially exited audio OTT platform Kuku FM and generated an internal rate of return (IRR) of about 90% and a 38.4X multiple on invested capital (MOIC)
It counts the likes of AGNIT Semiconductor, smallest.ai, Lumio, Licious, Jupiter, Darwinbox, Raise Financial Services, Eka.Care, among others as a part of its portfolio.
Source: Inc42 - Startups
