Bengaluru-headquartered enterprise capital agency Season Two Ventures (S2) is in superior phases of discussions to put money into 12 startups within the subsequent one yr from its first $100 million fund. Following which, the agency would have a look at elevating a second fund of about $350-400 million.
S2 will put money into $500,000-5 million in numerous business-to-business (B2B) startups with one funding per thirty days.
The agency is in talks with quite a few startups in Banking and Finance Companies and Insurance coverage, healthcare, retail and logistics and vitality and sustainability area, its Managing Accomplice Sajan Pillai informed BusinessLine.
“I consider that enterprise funds have a long-term spectrum of 5-7 years with respect to planning and therefore, the quick phrases points don’t matter in relation to fund efficiency. At S2, we consider how will our investments carry out in the long term, and the present pandemic doesn’t impression our selections,” he mentioned.
The agency is making an undisclosed seed spherical of funding in Bengaluru-based Warehouse Now, a warehousing startup, which is predicted to announce this week. Warehouse Now, which has presence in about 100 cities, will use the funds to scale up operations.
S2, an Indo-US hall VC agency, has additionally made six early-stage investments in India, together with in fee startup Uvik, air air pollution monitor agency Ambee, private information administration firm Ozone.ai, committing a complete of $15-20 million.
Second fund in 18 months
S2 will elevate its subsequent fund within the subsequent 18 months, after exhausting the current $100 million fund.
“This may be round $350-$400 million with a give attention to B2B start-ups as the primary one. We consider that even with the primary fund, we’re solely scratching the floor. There’s a super quantity of development potential,” Pillai mentioned.
“One of many largest sources of exit comes from clients themselves. The second class of exits is main patrons similar to Microsoft, Google, Amazon and Salesforce, and eventually, the longer term rounds and IPO are different potential exits,” he added.