Emerging Enterprise Venture Capital Fund

Emerging Enterprise Venture Capital Fund is the ninth fund of GVFL Ltd with a focus in early stage technology/ innovative companies pan India.

Investment Thesis:

The Fund will invest in a large diversified portfolio of Start-ups/SMEs with established go-to-market strategy, generating revenues and have received early stage funding. The fund will invest to increase the revenue traction in the portfolio companies.

High growth opportunities in Information Technology/ ITES (Artificial Intelligence/ML, mobile, automation, big data, block chain, Internet of Things), agriculture, food, healthcare / pharma / life sciences, consumer, fintech, environment, lean manufacturing are the focus areas for the Fund.

Stage Focus: The fund strategically targets early-stage companies, injecting capital during Pre-Series A, and Series A, Series B rounds.

Transaction Size: The fund will invest in the range of Rs 5 crore to INR 20 crore per transaction and Targets to acquire 5% to 20% of the share capital through convertible notes, CCPs and Equity.

Total Fund Size: The ‘Emerging Enterprise Fund’ has a fund size of INR 500 Crores

Value Addition:  The Fund aims to arm the Portfolio Companies and their promoters with necessary support to build and scale up their businesses and transform them in to successful business ventures.Beyond capital infusion, GVFL assists the startup in networking, bringing in systems and processes and raising future rounds.

Broad Selection Criteria for GVFL Funds

  1. Strong Founding Team: The 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.
  2. Product-Market Fit: GVFL Funds seeks 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.
  3. Innovative Disruption: The fund favors startups that leverage innovative technologies or business models to disrupt traditional industries or address pressing market needs. By backing disruptive innovations, GVFL aims to support ventures capable of driving significant market impact and value creation.
  4. Scalability Potential: Potential for scalability is a key consideration in the selection process. The fund targets startups with scalable business models capable of achieving rapid growth and market expansion. This criterion is crucial for maximizing returns and realizing the full potential of investments.
  5. Alignment with Fund Focus: While maintaining a sector-agnostic approach, GVFL gives preference to startups operating in sectors where it has demonstrated expertise and successful investment track record. This alignment ensures synergies between portfolio companies and facilitates value-added support from the fund.

By adhering to these selection criteria and leveraging its strategic investment thesis, GVFL aims to identify and nurture the next generation of Indian startups, driving innovation, economic growth, and societal impact.

 

Sector Preferences: We are a Sector agnostic Fund Manager. We believe in backing Startups with a core team in- place with strong execution capabilities, and startups which have achieved a Product- market- fit in terms of revenue, industry validation or both. In the past we have invested in diverse sectors such as-

  1. Biotechnology: Startups leveraging biotechnological advancements for healthcare solutions, pharmaceuticals, bioinformatics, and agricultural biotechnology.
  2. B2B SaaS (Software as a Service): Companies offering Software as a Service solutions tailored for businesses, including enterprise resource planning (ERP), customer relationship management (CRM), project management, and collaboration tools.
  3. Climate-tech: Innovators developing sustainable technologies to combat climate change, including renewable energy solutions, energy efficiency, carbon capture and storage, and smart grid technologies.
  4. Defence: Startups focusing on defense technology and solutions, including cybersecurity, unmanned aerial vehicles (UAVs), surveillance systems, and defense electronics.
  5. Cyber Security: Companies specializing in cybersecurity products and services, including threat detection, endpoint security, network security, data encryption, and identity management solutions.
  6. Logistics-Tech: Innovators revolutionizing the logistics industry through technology, including last-mile delivery solutions, supply chain optimization, transportation management systems, and warehouse automation.
  7. Direct-to-Consumer (D2C): Brands disrupting traditional retail channels by selling directly to consumers through e-commerce platforms, subscription services, and personalized shopping experiences.
  8. Ed-tech: Startups transforming the education sector through technology, including online learning platforms, virtual classrooms, educational content creation tools, and personalized learning solutions.
  9. Enterprise Tech: Companies offering enterprise software and solutions for businesses, including cloud computing, big data analytics, artificial intelligence, machine learning, and blockchain technology.
  10. Healthcare & Med-tech: Innovators revolutionizing healthcare delivery, medical diagnostics, telemedicine, digital health solutions, medical devices, and biotechnology advancements.

By focusing on these specific sectors, the Funds aims to capitalize on emerging trends, technological disruptions, and market opportunities, driving value creation for its portfolio companies and investors alike.