BoldCap Launches $25 SaaS Fund, Eyes Investments

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Venture capital firm BoldCap Ventures has launched a $25 million software-as-a-service (SaaS) fund to invest in early-stage startups. The fund aims to make 15-20 investments in the next 2-3 years, with ticket sizes ranging between $500,000 and $2 million. The new fund will focus on Indian startups operating in sectors such as enterprise SaaS, fintech, logistics, and healthtech. BoldCap Ventures said it aims to support startups with product-market fit, revenue growth, and customer acquisition. The SaaS fund is BoldCap’s second investment vehicle. In 2020, the VC firm launched its first fund, which was focused on seed and pre-seed stage startups. The fund has backed companies such as healthcare startup Wellthy Therapeutics, SaaS platform Hyperconnect, and vernacular social network Trell. BoldCap Ventures was founded in 2020 by Rajesh Sehgal and Manish Kheterpal. The firm has offices in Mumbai and New York and has invested in over 25 startups so far.

Despite the funding winter, the enterprisetech sector continued to be a sector of choice for investors. The space emerged as the third highest funded sector in Q1 2023 with $194 Mn funding. It also topped charts in number of deals in the period under review with 41 transactions.  The interest is largely led by a high quality and cheap developer pool available in the country. Alongside, SaaS applications have global use and can just be scaled up by tweaking certain aspects of the system to fit the requirements of global clientele.  It’s interesting to see that despite the funding drought in the Indian startup ecosystem, the enterprisetech sector continues to attract investors. The availability of a high-quality and cost-effective developer pool in the country, combined with the global scalability of SaaS applications, seems to be driving this interest. It’s also noteworthy that the enterprisetech sector emerged as the third highest funded sector in Q1 2023, with $194 Mn in funding, and topped the charts in the number of deals with 41 transactions. It will be interesting to see how BoldCap’s new $25 Mn SaaS fund will impact the enterprisetech sector and the Indian startup ecosystem as a whole in the coming years.