Aug 25 2021
Bangalore: An early stage venture capital (VC) firm, which has backed MyGate and Mfine, on Wednesday announced the first close of its fourth fund at $ 75 million (or ??556 crores).
Prime Venture Partner’s fourth fund is the largest to date, set at a total body of $ 100 million, and has also seen established institutional investors such as International Finance Corporation (IFC), which is part of the World Bank, join as a limited partner.
IFC’s contribution to Prime’s Fund IV stands at $ 15 million, which also saw the participation of a large endowment fund, the venture capital firm said. mint.
Prime had closed its first fund worth $ 8 million in 2012, its second fund worth $ 46 million in 2016 and closed its recent fund III in 2018 worth $ 72 million .
With Fund IV, Prime plans to continue making four to six investments per year and looks to deplete the new fund over the next three years. Overall, he appears to be supporting between 16 and 20 companies with the new fund.
In the past, the venture capitalist has largely supported startups with strong fintech and healthcare tech digitization themes. It will now seek to diversify its investments in new segments of decentralized technologies such as blockchain, electric vehicles, crypto as well as games and entertainment.
It will continue to support larger software sets in India, which are focused on international customers.
“IFC has a strong development focus, and most of the companies we’ve supported in the past have a strong development philosophy, whether we’re talking about NiYO bringing neo-banking to blue-collar workers or MyGate, for example. They (IFC) also bring many best practices from around the world and credibility to the work we have done so far. […] IFC invests alongside partners, particularly in India, and it is a reasonable possibility for them to participate in some of our tours, ”said Sanjay Swamy, Managing Partner at Prime Venture Partners.
Swamy added that the VC is expected to deplete its Fund III over the next 18 months as it plans to participate in its portfolio tracking cycles.
To date, Prime has backed nearly 32 companies in three funds and will continue to bet on companies from the early stage to Series A.
Prime was the first investor in startups such as the invoice discount platform, KredX; interactive learning platform, Quizizz, which has increased the monitoring rounds of Tiger Global and Sequoia Capital India.
In recent months, several Indian venture capital firms have closed their new funds. Chiratae Ventures (formerly IDG Ventures) closed its fourth and largest fund at $ 337 million earlier this month. Soon after, even Stellaris Venture Partners closed its second fund at $ 225 million this month.
“The market has a lot more players on the venture capital side and this is eclipsed by the opportunities and high quality entrepreneurs that the ecosystem sees. At Prime, we think it’s good that there is more money that will motivate more entrepreneurs to enter. True, valuations have increased, but our ability to support the founders and work closely with them continues to differentiate us, ”said Swamy.
Eight-year-old Prime Venture Partners is now looking to add a fourth partner to their fund as they look to formally expand their partnership and add more operational experience to the team.
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