Hyderabad Angels Fund Launches New Venture Capital Fund for Early-Stage Startups

Hyderabad Angels Fund has announced the launch of a new venture capital fund targeting early- and growth-stage startups in India. This initiative aims to provide crucial financial support to innovative businesses, focusing on sectors such as artificial intelligence, spacetech, gaming, and healthtech.

Investment Strategy and Focus Areas

The newly launched fund by Hyderabad Angels is registered as a SEBI Category I Alternate Investment Fund, reflecting its commitment to fostering the growth of scalable technology and AI-enabled models. The fund plans to invest in approximately 15 to 20 startups, with cheque sizes ranging from Rs 2 crore to Rs 4 crore. This strategic investment will primarily target early-stage startups from Pre-Series A to Series B funding rounds.

Hyderabad Angels Fund has outlined specific areas of focus, which include artificial intelligence, spacetech, gaming, and healthtech. These sectors are seen as promising fields with significant growth potential, offering opportunities for innovation and development of cutting-edge technologies.

Addressing the Scaling Gap

One of the primary objectives of the Hyderabad Angels Fund is to address the 'scaling gap' in funding that many startups encounter. By opening funding opportunities beyond the seed stage, the fund aims to support startups that require capital to scale their operations and bring their products or services to a larger market.

The fund intends to co-invest alongside other investors, thereby pooling resources and expertise to maximize the growth potential of the startups. Additionally, Hyderabad Angels Fund collaborates with incubators and accelerators to identify promising startups and provide them with the necessary resources and mentorship.

Track Record and Future Plans

Since its inception, Hyderabad Angels has backed over 70 startups, demonstrating a strong track record in supporting early-stage businesses. Notable companies like Tractor Junction have secured early-stage funding through the support of Hyderabad Angels, showcasing the fund's commitment to nurturing promising ventures.

With this new venture capital fund, Hyderabad Angels aims to extend its support to around 20 companies, fostering innovation and growth in the Indian startup ecosystem. The focus on scalable technology and AI-enabled models aligns with the increasing demand for advanced technological solutions across various industries.

Collaboration and Co-Investment

Hyderabad Angels Fund emphasizes collaboration with other investors and entities within the startup ecosystem. By co-investing and working alongside other stakeholders, the fund seeks to create a robust support network for early-stage startups. This collaborative approach not only enhances the funding capabilities but also brings diverse expertise and insights to the table.

The fund's strategy of partnering with incubators and accelerators further strengthens its ability to identify and nurture high-potential startups. These partnerships enable the fund to provide comprehensive support, including mentorship, resources, and industry connections, to help startups navigate the challenges of scaling their businesses.

Hyderabad Angels Fund's new venture capital initiative is set to make a significant impact on the Indian startup landscape by providing essential financial support and fostering innovation in key technology sectors.