Gold Silver Reports — Around the Globe for Inventus 3rd Fund — Inventus Capital Partners, an early-stage investment firm which has backed companies like bus ticketing portal redBus and online financial services player PolicyBazaar, has hit the road to raise its third venture capital fund. The Bengaluru and Silicon Valley-based firm is targeting $150-million corpus for the new fund, said one source directly familiar with the development. Inventus joins venture capital firms Accel India, IDG Ventures India and Ventureast that are currently on the road.
When raised, the new fund will take the total corpus under management by Inventus Capital to over $300 million. Its first fund raised $51 million in 2009, while the second closed with commitments of $106 million in January 2014.
The venture firm has been qui etly able to rack up exits, with the sale of its stake in redBus earning a 10 times returns or $25-million payout. Its other recent portfolio exits include acquisition of hospital information management solution provider Insta Health by Practo for $12 million and Genwi by Persistent Systems. “The firm is close to returning its first fund,“ said the source quoted above.
“Inventus isn’t allowed to comment on any fund-raising plans, current or future,“ Managing Director Samir Kumar said in an email response to ET’s queries.The firm has already filed with US regulator Securities and Exchange Commission (SEC) about its plans to raise a new fund, without disclosing an amount.
Inventus Capital falls in the bucket of home-grown venture capital firms like Nexus Venture Partners and Kalaari Capital. These firms are separate from local affiliates of global venture captial firms like Sequoia Capital, Accel or Matrix Partners, who have access to investor pool of the US franchisees.
Inventus Capital has also stepped up itspaceofdealmakingin2016 announcing five new investments including healthcare startups Healthifyme and Tricog, and used-car por tal Truebil.
In 2015, it on ly i n vested in recruitment company Aasaanjobs as valuations started shooting up.
Inventus has focused on making investments in both India-focused startupsand US-based software companies, which have a cross-border presence. Among its other well known portfolio companies in India is Power2SME, while in the US, it has backed fashion commu nity marketplace Poshmark, which has raised $ 66 million from investors like GGV Capital and AngelList.be W h i le Ku m a r and Parag Dhol are MDs based out of India, I nventus h a s Kanwal Rekhi and John Dougery based out of its California office. Rekhi is well known in the Indian American tech com munity in Silicon Valley, having been one of the first Indo A merican entre preneurs to take his company Excelan public on Nasdaq in 1987. Inventus’ plan to raise a new fund comes at a time when overall investment by VCs has fallen this year, after reaching a record high in 2015. In the first nine months of 2016, the number of early-stage VC investments fell 24% from a year ago to 290 deals, while the total capital invested plunged by a third to $1 billion, according to data from research firm Venture Intelligence. But investors remain bullish on the long-term prospects of Indian startups. VC funds raised $1.5 billion in 2015 compared with $1 billion raised in 2014.
The number may increase this year, primarily due to mega funds being raised by two venture capital firms. Earlier this year, Sequoia Capital closed its $ 920-million fund and Accel India is on the road to raise about $500 million, as ET reported earlier. Matrix Partners India also added $110 million to its $300-million second fund this year, while firms like IDG Ventures India, Ventureast and Blume Ventures have already garnered a majority of the corpus for their new vehicles. — Neal Bhai Reports