Nexus sets up $220-mn VC fund

Nexus India Capital, an early stage venture capital fund, on Tuesday announced the closure of its second fund, Nexus India Capital II. The $220 million fund is expected to put money in 20-25 companies over the next three years in multiple stages, with an average investment of $8-10 million per company.

“The fund will invest in early stage companies focused on domestic consumer and business services, technology, media and clean technology. These companies have the potential to grow at 50-200 per cent annually. The fund attracted 15-16 institutional investors, including endowments, foundations and sovereign wealth funds from North America, Europe and West Asia,” Nexus India Capital Managing Director, Naren Gupta, said.

The Nexus India fund, which would invest in six-eight companies every year, has a life of 10 years. The company would start using the money in four to five weeks.