NuVentures, an early-stage venture capital firm, launches a $75 million fund to support startups with a strong India connection. Founded by seasoned investor Venk Krishnan, the US-based firm aims to invest in AI, SaaS, and consumer tech startups. The fund will target startups either headquartered in India and expanding into the US market or those based in the US with engineering teams in India. NuVentures has evolved from an angel investment approach to a structured investment strategy, offering not only capital but also strategic value, customer access, and proof-of-concept testing through its technology company, NuWare. With venture capital firms becoming increasingly selective, the firm’s focus on high-growth startups with clear revenue paths is set to attract promising entrepreneurs. NuVentures has already secured commitments from high-net-worth individuals and a Fund of Funds in the US, making initial investments in four startups.
1. Introduction: NuVentures Launches Fund for High-Growth Startups
NuVentures launches fund to bridge the gap between Indian and US startup ecosystems. This $75 million fund aims to back AI, SaaS, and consumer technology startups with a strong India connection. Founded by Venk Krishnan in 2015, NuVentures has transitioned from an angel investment model to a structured VC approach, focusing on startups with scalable business models.
2. NuVentures’ Working and Revenue Model
2.1 Structured Investment Approach
Previously, NuVentures operated as an angel investment firm, selecting startups based on founder passion and market potential. Now, the firm follows a structured investment strategy, ensuring startups receive not only funding but also strategic guidance and market access.
2.2 Role of NuWare in Startup Growth
NuWare, a 30-year-old technology company founded by Krishnan, acts as a bridge between startups and customers across financial services, retail, and healthcare sectors. It provides proof-of-concept testing, helping startups validate their business models in real-market conditions.
3. Founders and Their Investment Background
3.1 Venk Krishnan’s Journey
Krishnan has been actively involved in the Indian startup ecosystem since 2002, initially investing in NetKraft and later backing Mu Sigma, BigBasket, Acko, HomeLane, Third Wave Coffee, Geist Beer, Lucidity, and Foxtale. Over the years, he has invested in more than 47 startups, refining his investment approach to focus on scalability and strategic value.
3.2 New Partners and Decision-Making Team
NuVentures has expanded its leadership with three new partners: Visveswaran Kartik, Neel Mukerji, and Prabhakar DJ. This shift ensures collective decision-making, moving away from Krishnan’s earlier solo investment model.
4. Investment Strategy and Focus Areas
4.1 Target Sectors
NuVentures will invest in four to five startups per year, with funding amounts ranging from $250,000 to $750,000. The focus remains on AI, SaaS, and consumer tech startups, particularly those with engineering teams in India or expansion plans into the US.
4.2 Addressing Early-Stage Challenges
One of the biggest challenges startups face is securing early customers. NuVentures helps overcome this by connecting startups with its extensive network of potential clients through NuWare.
5. Indian Startup Ecosystem and Funding Landscape
5.1 Decline in Venture Capital Inflows
The Indian startup ecosystem has witnessed a funding slowdown, with venture capital firms becoming increasingly selective. In February 2025, monthly VC funding dropped below $1 billion, marking a 25% decline.
5.2 NuVentures’ Market Positioning
Despite the slowdown, NuVentures positions itself as a valuable partner for startups, ensuring clear revenue paths before committing funds. This approach aligns with the industry’s increasing preference for profitability-driven investments.
6. Notable Investments and Portfolio Growth
6.1 Initial Investments
NuVentures has already invested in four startups, including:
- A Carnegie Mellon University alumni-founded venture
- Y Combinator-backed Pivot Robotics These investments indicate NuVentures’ preference for high-growth, innovative startups with global scalability.
7. Learning for Startups and Entrepreneurs
7.1 Importance of Market Validation
Startups must validate their products early by seeking real-market feedback through proof-of-concept testing, as NuVentures facilitates.
7.2 Scalability and Revenue Models
Investors now prioritize clear revenue paths. Entrepreneurs should focus on scalable models with high market demand to attract funding.
7.3 The Value of Strategic Partnerships
Beyond capital, strategic guidance, market access, and customer connections play a crucial role in a startup’s success.
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