Cactus Venture Partners Closes Inaugural Fund at Rs 630 Crore, Targets Climate Tech and Health Tech Startups
Mumbai-based Cactus Venture Partners (CVP) has successfully concluded the fundraising for its debut fund, securing a substantial amount of Rs 630 crore (approximately $77 million). The fund is earmarked for investments in promising startups operating in the domains of climate technology, health technology, and B2B Software-as-a-Service (SaaS) over the next couple of years.
The venture investment firm, specializing in early growth stage startups, boasts backing from both international Limited Partners (LPs) and domestic financial institutions. Notable supporters include SIDBI, Self-Reliant India Fund (SRI Fund), and the UP Startup Fund.
Significant contributions have also poured in from international and domestic Family Offices and Ultra High Net Worth Individuals (UHNIs), indicating strong confidence in CVP’s investment strategy and management team.
Co-founded by Anurag Goel, Amit Sharma, and Rajeev Kalambi, CVP has outlined plans to allocate its funds to eight to ten startups in the designated sectors, with investment amounts ranging between $2-5 million. The firm remains steadfast in its commitment to supporting startups at the Series A and early Series B stages, fostering close collaboration with founders to drive product growth.
A key criterion for startup selection, as highlighted by co-founder Amit Sharma, is not confined to verticals but revolves around achieving a strong Product-Market Fit (PMF) with favorable gross margins. Additionally, a clear path to capitalization in robust markets, coupled with cost optimization strategies for challenging market conditions, forms an integral part of CVP’s investment philosophy.
Currently, CVP’s portfolio comprises five startups, including Kapture CRM, Vitraya, AMPM, Auric, Lohum, and Rubix, along with an early exit from a fintech company. Furthermore, the firm is in advanced stages of evaluating two additional companies, anticipating closure within the next three months, thus underscoring its active investment approach.
This milestone fund closure by Cactus Venture Partners coincides with a period of anticipation within the industry, as stakeholders look to private equity (PE) and venture capital (VC) players to reignite fund flows following a subdued performance in 2023. Notably, investments by PEs and VC funds witnessed a significant decline in 2023 compared to the previous year, with early-stage and seed-stage funding particularly affected.
Despite the recent challenges, industry experts remain optimistic about the prospects for 2024, anticipating a resurgence in funding activity as market conditions stabilize and investor confidence rebounds. Cactus Venture Partners, with its freshly secured fund and robust investment strategy, stands poised to play a pivotal role in driving this anticipated resurgence in the startup ecosystem.