Cornerstone Ventures Raises $200 Million for B2B Enterprise Tech Startups in India

Cornerstone Ventures, a leading venture capital (VC) firm focused on B2B (business-to-business) enterprise technology investments in India, has announced the launch of its second fund. This new fund boasts a target size of $200 million, with a potential green-shoe option of an additional $50 million, bringing the total possible corpus to $250 million.

• Fund Size: $200 million with a $50 million green-shoe option (potential total corpus: $250 million)

• Investment Focus: Early- to growth-stage B2B enterprise technology startups across various sectors.

• Ticket Size: Ranging from $5 million to $ 15 million per investment.

• Number of Investments: Targeting 15-20 startups with the new fund.

• Investment Strategy: Focus on software platforms and marketplaces in sectors like financial services, retail, healthcare, and supply chain.

• Investment Philosophy: Prioritizing innovations that streamline core business processes, engage multiple stakeholders, and achieve account-level profitability.

Strong Track Record and Portfolio Examples:

• Cornerstone Ventures' first fund, launched in 2019 with a corpus of $50 million, has been successfully deployed across 21 portfolio companies.
• Examples of successful investments from the first fund include Credilo (digital lending), THB (healthcare data), Blubirch (reverse supply chain), and Dhiway (blockchain technology).
• The firm claims to have facilitated significant growth for portfolio companies, contributing $1-2 million in additional annual recurring revenue for each and achieving a 4x increase in the cumulative revenue base of the portfolio within four years.

Experienced Leadership and Investor Confidence:

• Cornerstone Ventures is led by former Reliance Industries executives Abhishek Prasad and Rajiv Vaishnav.
• The first fund was anchored by prominent institutions like the Department for Promotion of Industry and Internal Trade's Fund of Funds (managed by SIDBI) and the Self-Reliant India Fund (managed by SBI).
• Cornerstone Ventures is currently onboarding large institutional investors for Fund-II.

Looking Forward:

Cornerstone Ventures' new fund signifies a significant development in India's B2B enterprise technology investment landscape. The firm's focus on high-impact, multi-stakeholder solutions with clear profitability potential aligns with the growing demand for innovative tech solutions in various industries. The strong track record of Fund-I and the experience of the leadership team position Cornerstone Ventures for continued success in supporting the growth of promising B2B startups in India.