June 19, 2024: Venture Capital firm GVFL’s Prarambh Fund, has successfully closed the first tranche of ₹100 Crore. The total corpus of this new seed-stage fund is Rs 200 crore. The firm expects to invest in 25-30 seed startups this year through this fund.
The fund will focus on tech startups in B2B SaaS, healthtech, agritech, climate-tech, and deep-tech. The fund typically invests in the range of Rs 50 Lakhs to Rs 3 Crore per transaction. These investments are structured through convertible notes, Compulsory Convertible Preference Shares (CCPs), and equity, with the aim of acquiring 10% to 15% of the share capital in the target startups..
“Kamal Bansal, Managing Director, GVFL disclosed “Prarambh Fund will ensure the availability of a seamless funding pathway for startups from seed to growth stages. We believe that providing capital support to pre-revenue and early-stage startups will position GVFL as a comprehensive venture capital firm, capable of supporting companies through all stages of their development.”
Prarambh Fund to focus on sustainable, growth driven tech startups
The Prarambh Fund prioritizes startups led by visionary founders with a track record of execution and industry expertise. A capable founding team is essential for navigating the challenges of early-stage growth and seizing market opportunities effectively.
GVFL Funds invests in startups that have achieved a demonstrable product-market fit, validated through early revenue generation, industry partnerships, or user traction. This criterion ensures that investee companies are positioned for sustainable growth and market scalability.
GVFL (formerly Gujarat Venture Finance Limited) will also offer a co-investment platform named a4X.fund (accelerate for excellence) to support seed-stage companies with acceleration services and partnerships with mentors and industry experts to create their growth roadmap.
The Venture Firm is an independent, board-managed venture finance company. Uptill now, it has secured nine funds, which have supported over 110 firms and divested from over 75% of portfolio companies.
