Pavestone, a venture capital firm based in Hyderabad, has closed its Pavestone Technology Fund, raising Rs 816 crore. This is beyond its initial target of Rs 600 crore, an indication of intense interest by investors. The firm had exercised its greenshoe option twice to meet the demand. Though the target was revised to Rs 900 crore towards the end, it managed to close at Rs 816 crore.
Enterprise and Frontier Technologies
The Pavestone Technology Fund supports early-stage B2B technology startups across India. The firm intends to invest in around 14 to 15 startups with an average investment in the range of $5 million to $10 million per startup. Pavestone also favors startups that already have significant market impact and strong relationships with key private and public sector clients.
Pavestone has a strategy that focuses the investment on enterprise technology solutions: Many of these pose crucial challenges for large-scale businesses in sectors like generative AI, cloud computing, immersive technology, and bioengineering. V Laxmikanth, managing partner of the fund, “The core thesis of the fund is around enterprise technology that addresses public enterprise needs in the B2B space.” Hence, 80 percent of its capital would be committed to enterprise-focused startups.
The remaining 20% will go into “moonshot” projects, with high-risk yet potentially high-reward projects. This chunk of the fund will be for forward-looking, impactful projects in frontier technologies.
Early Investments Reflect Fund’s Strategic Focus
Pavestone has already started strategic investments in innovative startups. The portfolio currently includes:
- E42: No-code AI platform.
- Bellatrix Aerospace: Develops in-space propulsion.
- LivNSense: Industrial AI for decarbonization.
- NewSpace Research & Technologies: Specializes in aerospace technology related to defense.
- Cynlr: Works on developing visionary robotics that can see advanced visual things.
These investments align with the strategy of The support of disrupting B2B technologies with a high potential in massive, scalable markets. Pavestone invests in startups that offer advanced tech solutions and, for critical industry problems, drives substantial growth.
Investment Philosophy at Pavestone
Pavestone’s investment philosophy involves “timeless investment principles like rigorous analysis, risk management, and governance.” This means that the firm will be value-creating for the long term. Pavestone focuses on startups that will create transformative innovations in the Indian tech ecosystem.
Pavestone is scouting early-stage startups that offer high potential in frontier technologies. Proactively, this will help Pavestone’s power growth in India’s technology sectors and further establish the country as a global tech leader.
Looking Ahead: A Vision for India’s Tech Ecosystem
With a significant investment in frontier technologies and enterprise solutions, Pavestone is setting itself up as a key enabler in the growth of India’s tech ecosystem. Long term, the firm wants to encourage innovative startups, which will lead to impactful change across industries.
Pavestone’s fund will further nourish the next generation of technologically innovative initiatives in India. With each strategic investment, the firm remains focused on the ultimate objective: transforming India into a global technology powerhouse.
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