VC firm Seafund eyes up to 25 deep-tech investments, aims for follow-up too

The investments will be made over the next two to three years as part of the firm's second fund, a Category-II AIF (alternate investment fund)

Early-stage venture capital firm Seafund is targeting investments in 20-25 deep-tech companies over the next two to three years, general partner Narendra Bhandari told Business Standard, with plans to invest disproportionately in these companies out of its total capital pool of Rs 250 crore.

 

The VC firm has invested in nine companies so far, including semiconductor startup Calligo Technologies and space tech startup TakeMe2Space, among others.

 

"We will invest in 20-25 companies at the early stage and we love to do a follow-on investment. So, we will probably deploy only 50-60 per cent of our funds across these 25 companies and reserve 40-45 per cent of the fund for follow-ons with maybe two to four companies. There will be a disproportionate investment in some of our winners or the companies that are doing very well," Bhandari explained.

 

The investments will be made as part of the firm's second fund, a Category-II AIF (alternate investment fund). Bhandari said the firm is conducting its due diligence process and working with several startup founders, while simultaneously raising capital from limited partners such as fund of funds (FoF) for the deep tech sector, corporates, family offices, and ultra high-net worth individuals from India and abroad. The Fund II was launched in December 2023.

 

The Bangalore-based firm is aiming to raise a total amount of Rs 250 crore in the next six months. It has raised nearly 50 per cent of that amount to date.  

 

"We spend anywhere between 3-6 months working with founders, sound diligence such as financial diligence, legal diligence, and more. After that, over the next two to three years, we will go on investing in these companies. And then, follow-ons can also happen," Bhandari said.

 

Prior to Fund II, the firm had launched Fund I (a Category I Angel fund) in 2018 where it invested in 14 startups. Out of these companies, it made a follow-on investment in three startups from the capital pool of its second, deep-tech fund.