VC Funding Dynamics: How Micro VCs are Reshaping Indian Startups

Sunday, 18 August 2024, 17:29

VC funding is seeing a remarkable evolution as micro VCs gain prominence in supporting Indian startups. Led by Aviral Bhatnagar's new firm AJVC, these micro VC funds are focusing on pre-seed investments, which are crucial for early-stage ventures. This shift comes as larger VC firms adopt a more cautious approach, creating room for innovative potential in the startup ecosystem.
Indiatimes
VC Funding Dynamics: How Micro VCs are Reshaping Indian Startups

Micro VCs on the Rise

Aviral Bhatnagar, who previously directed enterprise software and AI investments for Venture Highway, has launched a Rs 100 crore fund under AJVC. This new VC firm prioritizes pre-seed stage investments, aiming to diversify capital flows into early-stage Indian startups.

Key Attributes of Micro VC Funds

  • Micro VC funds typically have a smaller investment size and focus on early-stage companies.
  • AJVC adopts an approach that eschews sector restrictions, enabling a broad investment strategy.
  • Established firms like Better Capital and Java Capital are also contributing to this growing trend.

Aviral Bhatnagar believes that with larger VC funds shifting towards safer investment avenues, emerging micro VCs have unique opportunities to take on riskier bets. This shift fuels innovation and the potential of new startups in the market.

Future Prospects for AJVC

With backing from family offices and high-net-worth individuals, AJVC has secured the necessary capital to invest in over 30 startups in the coming years. As the venture landscape continues to evolve, micro VCs are likely to play a significant role in shaping India’s entrepreneurial ecosystem.


This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.


Related posts


Newsletter

Get the most reliable and up-to-date financial news with our curated selections. Subscribe to our newsletter for convenient access and enhance your analytical work effortlessly.

Subscribe