Ventureast Heads Out in Search of Deals
Venture capital firm looks to make angel and seed investments through its new $4-million fund
Hyderabad: Venture capital firm Ventureast is looking to make angel and seed investments through its new $4-million fund, which is expected to be up and running by mid-2017.
Bobba Venkatadri, general partner at Ventureast, said the company is primarily looking to co-invest in six to eight digital health startups, and that the first deal could be finalised in the second quarter. “We have spoken to enough investors who have expressed interest,” Venkatadri told ET.
“If you look at our history, we have co-invested with Accel Partners, Peepul Capital, Eight Roads Ventures and Endiya Partners.” While half of the $4-million corpus is being brought in by Ventureast, the other half is going to be contributed by a few high net-worth individuals, said Venkatadri. Ventureast recently co-invested in a seed round for Celes Care, a virtual clinic for women, and that was one of the factors that prompted the firm to start a fund dedicated to angel and seed investments. Over the last six months, Ventureast was also approached by at least 20 digital health startups to
VENTUREAST’S GENERAL PARTNER SAYS...
raise angel or seed rounds.
“Our premise is that digital health is going to be a dominant factor in healthcare, just like biotechnology was several years ago. It’s a new space and seed fund is the kind of bet it requires,” said Venkatadri. He pointed out that venture capitalists’ investment in an angel or seed round is beneficial to the startup because it assures availability of funds through the business cycle of the entrepreneur. Partners at the firm also think that their expertise in healthcare would benefit the early-stage digital health startups they invest in. They hope to make these bets early on through this fund and make Series A- or B-level investments in a few of those startups later on. “Some of the investments that we make through this angel fund will help us identify potential candidates for future investments that can be made through the fourth Ventureast Life Fund, which should be ready in about nine months from now,” said Jagannath Samavedam, general partner, Ventureast.