Cornerstone Ventures, an early-stage VC firm focused on SaaS startups, announced the first close of its $200M second fund, securing $40M from domestic LPs, including family offices, HNIs, and corporates. The fund aims to invest in 15-20 deals across sectors like fintech, retail, ecommerce, and healthcare. With strong returns from prior investments and the addition of Suresh Pareek as General Partner, Cornerstone continues driving growth in India’s tech ecosystem.
1. Introduction to Cornerstone Ventures: A Key Player in the Indian Startup Ecosystem
Early-stage VC firm Cornerstone Ventures has secured the first close of its $200 million fund, underscoring its influence in India’s SaaS and tech sectors. Founded in 2018 by Abhishek Prasad and Rajiv Vaishnav, the firm funds early- to growth-stage startups leveraging SaaS to transform industries.
With a $200 million fund target, Cornerstone plans investments of $5–$15 million in 15–20 high-growth companies across sectors like financial services, retail, ecommerce, and healthcare. Its portfolio includes Credilio, Blubirch, and Credit Nirvana.
The fund’s backers, including family offices, HNIs, and corporates, highlight strong confidence in its ability to deliver returns.
2. The Founders Behind Cornerstone Ventures and Their Vision
Abhishek Prasad and Rajiv Vaishnav, the founders of Cornerstone Ventures, have extensive experience in the Indian investment landscape. Before founding Cornerstone Ventures, the team gained venture capital expertise at Reliance Industries’ investment arm, mastering the tech and startup ecosystems.
Managing Partner Abhishek Prasad celebrated the first close of the new fund as a pivotal milestone. Co-founder Rajiv Vaishnav’s expertise in market research and strategic investments complements Abhishek’s vision of transforming industries through enterprise SaaS growth.
3. Cornerstone Ventures’ Growth and Investment Strategy
As part of its strategy, Cornerstone Ventures primarily targets SaaS-based startups that offer solutions to businesses, empowering them to optimize processes, enhance productivity, and drive better customer experiences. The firm has already seen impressive returns from SaaS companies in its portfolio. Companies like Zoom, Salesforce, Shopify, and Twilio have delivered over 800% returns, surpassing consumer-focused tech giants like FANG stocks.
Cornerstone Ventures focuses on scaling startups with proven product-market fit, offering both capital and strategic guidance for growth.This approach has contributed to the firm’s success, as it has already helped several startups achieve significant milestones.
4. The Role of Suresh Pareek as General Partner
A key development in Cornerstone Ventures’ growth is the appointment of Suresh Pareek as the new General Partner. Pareek, founder of Ideal Cures, brings extensive business and investment experience. His work with startups via Sukvi Ventures bolsters Cornerstone Ventures’ investor appeal and portfolio growth potential.
His deep network of investors and industry knowledge will be invaluable in accelerating the firm’s next phase of growth. As part of his new role, Pareek will focus on sourcing new deals, assisting in the development of portfolio companies, and identifying future opportunities in SaaS and related sectors.
5. Key Sectors and Investment Opportunities
The new fund from Cornerstone Ventures will be deployed across various sectors that are poised for significant growth. These sectors include financial services, insurance, retail, consumer goods, ecommerce, distribution and supply chain, and healthcare products and services. Each of these sectors has witnessed substantial transformations due to technological advancements, and Cornerstone Ventures aims to leverage this trend by investing in startups that offer innovative solutions.
For instance, the financial services sector in India is rapidly evolving, with fintech companies disrupting traditional banking models. Similarly, the retail and ecommerce sector has seen a surge in online shopping, and Cornerstone Ventures plans to invest in companies that are innovating within these spaces. By targeting high-growth industries, Cornerstone Ventures aims to position itself as a leading VC firm in India’s startup ecosystem.
6. Looking Ahead: The Future of Cornerstone Ventures and Indian Startups
Early-stage VC firm Cornerstone Ventures marks first close of $200 million fund, and this marks just the beginning of its ambitious plans for the future. Cornerstone Ventures actively drives strategic investments in the SaaS sector and scales high-impact startups through its robust pipeline. The firm, targeting a $200 million fundraise, is committed to driving innovation and shaping India’s tech future.
With Pareek’s appointment and portfolio growth, Cornerstone Ventures is poised to empower India’s next wave of tech entrepreneurs.
7. Learning for Startups and Entrepreneurs
For entrepreneurs looking to raise capital, Cornerstone Ventures’ approach offers valuable lessons:
- Focus on scalable models: Cornerstone Ventures backs SaaS firms for their scalability and high-return potential.
- Leverage networks: Suresh Pareek’s role highlights the value of industry ties for capital and strategy.
- Target trends: Cornerstone’s focus on fintech, retail, and healthcare showcases the impact of aligning with market trends.
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