What’s the deal? Chiratae Ventures, an India-focused technology venture capital firm, is launching a new $35 million seed fund. It plans to write cheques of between $500,000 and $1 million, targeting startups in high-growth emerging sectors.
Why now? Competition for seed and early-stage deals has intensified across India’s top venture funds. As a person briefed on the plan told ET, “the intent is to focus on cheque sizes of between $500,000 and $1 million, and get exposure to high-growth emerging sectors early.”
What’s the endgame? Chiratae, formerly known as IDG Ventures India, will keep making Series A to late-stage technology investments alongside the new fund. Earlier this year it announced it would add $20 million to its fourth fund.
What could go wrong? With more players chasing seed deals, firms must offer more than capital to win founders. Accel Partners launched an accelerator called “ReBound” for second-time founders; Sequoia Capital started its $200 million Surge; and Orios Venture Partners re-launched its accelerator, Misfits.
The signal: Foreign investors including GGV, Akatsuki Entertainment Technology, Korean Investment Partners, Qiming Ventures, Morningside, and Venture Highway have stepped up deal-making in India. With firms like Accel and Lightspeed Venture Partners expected to raise fresh capital, early-stage technology deal activity looks set to surge.
Read more: siliconindia.com
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