Early-stage venture capital firm Ankur Capital is gearing up for the initial closure of its third fund in December, with plans to make two to three early-stage investments from the new fund this fiscal year, as confirmed by Zahin Hussain, President of Partnerships at Ankur Capital.
In a challenging funding environment for Indian startups due to factors like rising interest rates in the US, Ankur Capital’s $150 million fund announcement comes as a noteworthy development. The VC firm is set to support approximately 25 startups through its third fund. While the initial investment checks are anticipated to range from $1-2 million, the VC will also commit follow-on investments of up to $10 million in individual companies, as stated by Rema Subramanian, Co-founder and Managing Partner of Ankur Capital.
Founded in 2014 by Ritu Verma and Subramanian, Ankur Capital specializes in backing science-driven startups that tackle real-world challenges. Currently, the firm boasts a portfolio of 22 startups. In 2020, it commenced investments from its second fund of $50 million. From its inaugural fund, which completed its final close in 2016, the VC firm has successfully exited from seven companies.
During its recent event, Ankur Capital Connext 2023, the VC firm emphasized the disruptive potential of its portfolio companies, underlining that innovation, rather than capital, is now the primary driver of disruption.
Ankur Capital’s diverse portfolio includes biotech startup String Bio, known for utilizing biotechnology to produce eco-friendly and cost-effective animal feed and food ingredients. The VC also supports zinc-based battery platform Offgrid Energy Labs and numerous agritech companies.
Ritu Verma expressed the belief that innovation will shape the categories of the future, reaffirming the firm’s commitment to supporting entrepreneurs in this endeavor with its next fund.
Zahin indicated that Ankur Capital is strongly focused on deep science technology, planning to allocate about 30% of its fund’s corpus to this sector. During the event, several portfolio companies, including Offgrid Energy Labs, shared their progress, with Offgrid expecting to commercialize its products within the next year. The startup secured funding from Shell Ventures, Ankur Capital, and other investors in the previous year.
