3one4 Capital, a Bengaluru, India-based venture capital firm, closed its fourth early-stage fund (sixth fund overall), at $200 million (INR 1600 crore).
3one4 Capital has a diverse investor base, including India’s three systemically important banks, five of India’s largest listed banks by market cap, eight of India’s leading mutual fund operators, leading US university endowments, global sovereign funds, global corporations & insurance companies, India’s leading corporations, and a selection of India’s largest family offices.
Fund IV marks the continuation of the firm’s flagship early-stage venture capital strategy. The first close was completed in March 2023, and over five deals have already been approved or invested in. The final close is expected by the end of Q1 FY 2023-24.
3one4 Capital will continue to focus on early-stage startups in Consumer Internet, SaaS, Fintech, and Enterprise & SMB digitization, while expanding investments in Digital Health, Climate Tech, and other emerging areas. The firm aims to invest in early-stage startups with cheque sizes ranging from $0.5 million to $5 million, with a median cheque size of $1.5 to $3 million. Additionally, the firm will also be looking at post-seed and pre-Series A funding rounds.
3one4 Capital works closely with founders and subject-matter experts to strategize for product-market fit, defensibility, revenue growth, and impact. Its in-house teams in Finance, Governance & Business Integrity, Growth & Capital Development, and Research teams act as strategic partners to amplify portfolio companies’ execution, growth, and reach.
With the launch of Fund IV, the firm will now manage committed capital of INR 3,710 crore (~$510 million), with over INR 6,000 crore ($750 million) in assets under management. The portfolio companies of the funds have a cumulative market cap of over $7.5 billion (INR 60,000 crore).
FinSMEs
09/05/2023