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Vertex Ventures seeking diversification across sectors for investment opportunities

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In Short:

Vertex Ventures Southeast Asia and India is increasing investments in India, focusing on new sectors like mobility, sustainability, and clean energy. The VC firm aims to invest in scalable businesses with strong unit economics. They plan to increase startup investments from 3-4 to 5-7 annually, with ticket sizes of $4-6 million per company. Vertex Ventures also plans to provide follow-on rounds in select startups with larger fund sizes.


Vertex Ventures Plans to Expand Investments in India

Exciting news from the world of venture capital – Vertex Ventures Southeast Asia and India is gearing up to diversify its investments in India! With a goal of increasing the number of deals and exploring new segments, the VC firm is ready to make its mark in the Indian startup ecosystem.

Background

Having raised five funds till date, including a substantial $541 million fund last year against a target of $450 million, Vertex Ventures has a strong presence in the US, China, and Israel. The firm has already made investments in companies like Licious, Kuku FM, and Nium, and has a rich history of backing successful ventures.

“With every successive fund, we are becoming bullish on India,” says Kanika Mayar, Partner at Vertex Ventures.

Investment Focus

Vertex Ventures has been actively investing in India since 2013-14, focusing primarily on consumer tech, fintech, SaaS, and healthtech startups. However, they now plan to venture into new sectors such as mobility, sustainability, and clean energy, reflecting their confidence in the evolving landscape of Indian tech and VC ecosystem.

“We are bullish in India because of high-quality founders, deep scalability, and potential to build large profitable companies,” adds Mayar.

Expansion Plans

The firm aims to increase its startup investments from an average of three to four per year to about five to seven annually. They plan to stick to pre-Series A and Series A investment stages with ticket sizes ranging from $4-6 million in each company. With their fifth fund, Vertex will also have the flexibility to participate in follow-on rounds for select startups.

“We reserve substantial capital for follow-on investments as well,” notes Mayar.

Exit Strategies

Exit stability is a key consideration for Vertex Ventures, with IPOs and large-scale M&A as primary routes for exits. The firm emphasizes the importance of providing the right exit opportunities for their capital providers, showcasing their focus on long-term success.

Vertex Ventures has also allocated $50 million from its fifth fund to support women-led startups, reflecting their commitment to diversity and inclusion in the startup ecosystem.

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