Together Fund, a Bengaluru-based venture capital firm, revealed the first close of its $150 million early stage fund, Together Fund II, focused on SaaS and AI startups. The fund has garnered interest from institutional investors in the US and Asia. The VC firm plans to invest between $1 million to $5 million in seed and Series A rounds of startups, as stated in a recent press release.
Founding Partner Manav Garg Highlights India’s Technology Ecosystem Progress
Manav Garg, founding partner of Together Fund, expressed enthusiasm over raising their second fund, attributing it to the remarkable progress of their existing portfolio and India’s thriving technology ecosystem, despite challenging funding and macroeconomic conditions. Garg emphasized that AI is becoming a crucial asset for enterprises, revolutionizing solutions and delivering unprecedented value to customers.
Together Fund’s SaaS Focus and Expansion into AI Opportunities
Together Fund, known for its founder-first philosophy, had previously announced an $85 million corpus for SaaS startups in 2021. The VC firm engaged with over 1,700 startups and invested in 20 founding teams. It focused on various horizontal and vertical SaaS application areas, such as healthcare and cloud for connected devices. Now, with the second fund, the firm aims to extend its founder-first approach. It will focus on AI opportunities that offer exponential growth potential for startups.
Emphasis on Early Stage Partnerships with AI-First Founders
Together Fund actively invests in generative AI companies in healthcare, developer infrastructure, and modern marketing stack, with a focus on AI. The firm supports AI-first founders from the inception stage of their journey. They believe that early pioneers can create and capture entire markets in a matter of weeks or months.
Funding Winter Impact on VC Firms and Startup Funding
Despite the ongoing funding winter, several VC firms have successfully closed their funds in recent months. The VC arm of Singapore’s Temasek, Vertex Ventures, marked the first close of its Vertex Master Fund III at around $900 million. In India, Blume Ventures, 3one4 Capital, Chiratae Ventures, and Aeravti Ventures have all announced successful fund closes. However, startup funding in H1 2023 has experienced a significant decline, reaching $5.4 billion compared to $19 billion in the same period last year as per report.
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