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Early-stage venture capital firm 3One4 Capital announces USD 100 million third fund

3One4 Capital would invest anywhere between USD 500,000 to USD 4 million each in 25 to 30 startups.

Funding Chronis Yan on Unsplash

Early-stage venture capital firm 3One4 Capital said Wednesday it has launched its third fund of USD 100 million, bringing its total capital under management to over USD 210 million.

The company said it had already raised more than USD 40 million of its total corpus from global and Indian Limited Partners which include family offices, endowments, foundations, as well as corporate and financial institutional investors.

From Fund III, 3One4 Capital would invest anywhere between USD 500,000 and USD 4 million each in 25 to 30 startups. It said it’s looking at companies operating in sectors such as SaaS and enterprise automation, media & content, fintech, and deep technology.

“Our investor base now combines an intellectually-diverse and globally-positioned pool of resources that provide a consistent competitive edge to the firm and its portfolio companies. By deepening our access to strategic corporations and investors, we can now direct more meaningful capital through the firm’s bottoms-up selection routines to discover the next set of generational tech companies from India,” Pranav Pai, managing partner, 3one4 Capital, said in a statement.

The firm has four prior funds including a dedicated seed fund, Rising I, and a dedicated opportunity fund called Continuum I through which it currently has USD 110 million of capital under management. It has backed startups such as Licious, BetterPlace, Open, Bugworks, YourStory, DarwinBox, Pocket Aces, Faircent, LoanTap, Jupiter, Yulu, and Tracxn.

“Our deep involvement model is designed to help founders optimize for sustainable growth by serving as a force multiplier on the path towards defensible long-term value creation,” said Siddarth Pai, managing partner, 3one4 Capital.

At a time when India’s GDP shrunk by 23.9%, Indian VC firms raising fresh funds brings a ray of hope for startups. Yesterday, early-stage accelerator 9Unicorns said it raised USD 14 million and would invest USD 100,000 for five to seven percent equity per startup. Last month, Mela Ventures raised USD 17.5 million to invest in early-stage B2B startups. The same month, Lightspeed India Partners raised USD 275 million for its third India fund.

“This year began with a crisis like no other. It is always tough to start a company, it requires passion & leadership—and in these times, it requires more courage than ever before,” the company said in a statement. “Lightspeed believes this is when the best entrepreneurs and companies of the future will emerge.”