Avataar Venture Partners Launches $350 Mn Fund II To Back B2B, SaaS Startups
Avataar Venture Partners, a VC fund focussed on SaaS and B2B startups, has launched Fund II with a target size of $350 million.
The new fund will invest in 12-15 growth-stage startups operating via business-to-business (B2B) and software-as-a-service (SaaS) models.
Avataar Venture Partners
Founded by Mohan Kumar and Nishant Rao in 2019, Avataar Venture Partners has already raised $400 million, which comprises Fund I of $300 million and a $100-million top-up fund.
The VC fund has made its first close with institutional investors from the US, Europe, and the Middle East.
Speaking about the development, Mohan Kumar, founder and managing partner at Avataar, said,
“The new fund’s size may bump up to $400 million. The investment cheque size will range between $15 million and $50 million. We have already closed one deal with this new fund, which was $15 million. Two more investments are in pipelines.”
The VC fund generally invests US$10 Mn to US$50 Mn in startups with an ARR of US$10 million and above and helps these startups scale beyond $100 million to US$150 million in ARR.
Avataar’s investment portfolio includes wellness and fitness SaaS unicorn Zenoti, unicorns such as Amagi and ElasticRun and other startups such as CRMNext, RateGain, and Capillary.
Coming back to the development, Avataar Venture Partners looks to support up to 15 companies through the new fund. With an average ticket size of $35 million, the new fund will support companies from Series B to D stages for an average period of at least seven years.
As per Mohan, the investment will comprise 60-70% in SaaS and 20-25% in B2B marketplaces across healthtech, agritech, and deeptech sectors. He added that the B2B market is more predictable in terms of revenues and is not cash-guzzling. Additionally, the exits are much easier in SaaS, B2B and deeptech.
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