Ventureast Fund Advisors India Ltd is close to raising $150-200 million for its fourth fund Ventureast Proactive, a technology-focused fund, according to a Mint report citing a top company executive.
"We expect this fund to close faster than the previous ones given the sentiment revival among the large institutional investors," Sarath Naru, managing partner, Ventureast, told the newspaper.
Overseas investors like institutional investors from the US and large family offices in the Middle East, the UK & pension funds and Indian institutions are expected to invest in the new fund.
In the last fund Ventureast Life Fund III, foreign institutions invested 80 per cent while Indian institutions put in 20 per cent.
Ventureast spokesperson confirmed the development over phone but did not disclose details.
Ventureast Life Fund III is a $200 million venture capital fund which focuses on healthcare, sustainable agriculture and clean environment technology sectors. It typically seeks to invest between $5 million and $15 million in its portfolio companies.
Through its new fund, the venture capital firm will invest in cloud technologies, operating in digital health space, social media and the Internet of Things.
“We are also looking to invest in companies that are working on ‘consumerisation of enterprise software’—those that are making business software simpler and more interactive,” said Sateesh Andra, managing partner, Ventureast Tenet Fund, one of the funds promoted by the company.
“India is no more a negative story in anybody’s mind…economic policy situation is not the show-stopper any more. Also, the tremendous amount of news as well as investments that have come into the e-commerce companies from either hedge funds, or large family offices has helped,” Naru told the newspaper.
Ventureast generally invests in at least three companies in a quarter.
“Whether in India or globally, the VC universe is shrinking. Only the good will survive and many mediocre ones will die. LPs will put money only in winners and entrepreneurs, too, want to work with the right set of VCs. We have seen that happening in the US and that will be the case here in the Indian context as well,” he added. But Andra expects new, sector-focused funds to continue to emerge.
Last year, the VC firm invested around $30-35 million in 7-10 new firms including Stylecraze Beauty Care Pvt Ltd, Polygenta Technologies Ltd, Pinnacle Engines Inc, Total Prosthetics and Orthotics India Pvt Ltd and others.
Recently, it invested Rs 40 crore along with Asian Healthcare Fund ($6.5 million) in Hyderabad-based Eye Gear Optics India Pvt Ltd that runs a chain of optical retail stores under the brand name Ben Franklin across the country.
(Edited by Joby Puthuparampil Johnson)