Ahmedabad-based micro-venture capital firm Volt VC said Tuesday it has floated its maiden fund with a target corpus of Rs 45 crore ($5.4 million) to invest in consumer-centric startups at the pre-seed stage.
The Volt VC Fund-I is registered with the Securities and Exchange Board of India as a Category II Alternative Investment Fund (AIF). The VC firm aims to close the fund in the next three to four months, it said in a statement.
Volt VC said it aims to bridge the gap in pre-seed funding to startups across India. The fund will primarily invest in consumer-focused businesses across various sectors, particularly in direct-to-consumer, business-to-consumer), and business-to-business-to-consumer models. It will invest between Rs 50 lakh and Rs 2 crore in approximately 20-25 startups at the pre-seed stage.
Param Patel, managing partner at Volt VC, said that India is witnessing a boom in consumer-centric startups, reflecting the innovative spirit and entrepreneurial drive of the country. However, there has been a lack of micro-VC funds to support startups at the pre-seed stage.
“There is a critical need for support and funding at the pre-seed stage to ensure these promising ideas can grow and thrive,” said Patel.
Patel previously led startup investments at Gujarat Venture Finance Ltd (GVFL), following a brief stint at an investment bank in New York City.
During his tenure at GVFL, he was involved in several investments across various sectors, including Petpooja and Qarmatek. He then became the Chief Investment Officer (CIO) and a founding team member at Terazo, where he raised a $7 million fund, which is also India's first regulated tokenized fund on blockchain in Gujarat’s GIFT City.
