After managing two successful funds, we now present YourNest Innovative Products VC Fund III.
Focused on disruptive technologies to enhance the way mankind leverages the value of time, this US$ 75 mn fund will invest in startup founders across a spectrum of DeepTech domains: AI, IoT, Robotics, AR/VR/MR, Dev. Tools, Edge Cloud and other Digital products.
As always, our intent is to create an opportunity for Indian entrepreneurs to scale into global markets with IP-led innovations: many of our portfolio companies in YourNest VC Fund II have secured patents and attracted customers in international markets.
As a pioneering, pre-Series A, early-stage venture capital fund established in 2011 to support audacious startups building life-changing businesses, YourNest strongly believes in the human capability and works with the dictum of ‘what is impossible today is routine tomorrow’.
We believe, too, that we are Challengineers: a team that actively pushes boundaries and engineers outcomes, standing shoulder to shoulder with our founders and supporting them with ‘Nurture Capital’. With an established network of professionals, innovators, business leaders, advisors and mentors, we offer the most enabling eco-system for any startup whose business is validated by customers. Our team prides itself on identifying committed entrepreneurs with the highest level of integrity, enabling their business ambitions and helping them to scale for international markets.
In 2020, we launched our fast-track funding program SOAR which invested in five startups. The year also saw us exiting Uniphore and SmartQ from our first fund – YourNest Angel Fund – with a 0.7x DPI. Between the two funds, we are confident of multiple exits to deliver significant returns to our investors in the foreseeable future.
Investment Thesis
With the rise of entrepreneurs and the growth of startups in the past few years, we believe there are critical sectors, rooted in technology, that will fuel the next level of disruption in the coming decade. YourNest Innovative Products Fund-III will primarily seek to invest in enterprise-oriented, innovative, IP-led, tech-product startups. Its mission is to select products that are built around emerging technologies and have applications at scale. These product companies could be in sectors including Mobile Internet, Cloud Technology, Automation of Knowledge Work, Low-code or No-code Platforms, AI-based Cybersecurity, IOT, Edge Computing, Digital Twinning, Autonomous Technologies, Robotics, Electronic System Design & Manufacturing (ESDM). The focus of the Fund will be to invest in unlisted companies. The investment may start at an early seed stage and continue investing in promising companies at various stages of their growth. One or more rounds are likely to be made with co-investment from other investor(s) who may be an individual or an institution or an AIF or international investor such that the risk and reward of the portfolio company’s success is shared.
ESG Policy Statement
The YourNest Capital Advisors Pvt Ltd. i.e. Investment Manager (“IM”) of the Fund, commits to being a responsible investor, considering environmental, social and governance issues across all its investments. The IM is committed to comply with its ESG policy, applicable laws of the land and to be responsive to existing and emerging ESG concerns. We adhere to our responsibility to people and the planet while setting the stage for long-term success.
Through ESG integration in our investment approach, we will endeavour to maximise business and investment opportunities. ESG integration will enable us to grow and improve the companies in which we invest, for long-term value generation opportunities for the benefit of all stakeholders. At the same time, we believe that ESG integration will help mitigate any liability, credit, market or reputation risks emanating from such issues.
Nurture Capital Philosophy
YourNest is a sharply focused early-stage DeepTech VC fund from India. The first fund established in 2012, raised US$ 14 mn and has several companies in the portfolio that have had multiple up-rounds and are on their way to a 4X+ return. Having completely invested its first two funds, YourNest is currently raising its third fund of US$ 75 mn to invest in Indian start-ups with a focus on DeepTech domains like AI, IoT, Robotics, AR/VR/MR, Dev. Tools, Edge Cloud and other Digital products.
The YourNest team combines what may well be India’s widest access to prospective investees along with a rigorously prudent selection process that enables us to stay true to our investment thesis of nurturing high-potential entrepreneurs. In addition, we give our investors transparent access and exposure to high-growth, under-the-radar tech start-ups in India.
In a country where entrepreneurship is encouraged but comes with its own challenges, the Indian DeepTech eco-system is rapidly evolving.
As local Fund Managers, the YourNest team of experienced partners operates as unified enablers who have become adept at spotting emerging enterprises, nurturing and guiding them up the ladder of success. With a leadership coach as a founding partner, other partners bring complementary skillsets that including M&A, Financial Governance & Restructuring, Executive Development, Deal Flow Management, Building Intellectual Property and Global Scale. Brand building, Marketing and HR Practices are other competencies which have been added via the Venture Partners and Entrepreneur-in-Residence and are available to the portfolio companies.
Our portfolio companies benefit from:
- ‘Nurture Capital’ rather than plain ‘Venture Capital’.
- Our ability to mentor and coach entrepreneurs of investee companies.
- Our advisory expertise in key entrepreneurial matters: strategy, compliance, legal, HR, secretarial, talent sourcing, etc.
- Our network of corporates and individuals who can collectively multiply advantage for our investees.