Local venture capital funds rally around entrepreneurs in state and country | Ahmedabad News

With many startups scripting enviable success stories based on their innovative and scalable ideas, several local venture capital funds and investors have also come to fund startups and be part of their success stories. These Tier I and II city venture capital funds are also driving the next wave of entrepreneurship in and outside Gujarat.
For example, Ahmedabad-based startup accelerator DevX has infused Rs 3 crore into some eleven startups in recent years. He launched a venture capital fund, which invests in early stage technology B2B startups.
Another city-based seed venture capital fund, Amara Ventures, has invested in more than a dozen startups in less than a year. His investment in a startup ranges from Rs 5 lakh to Rs 25 lakh. Disruptworkz Infolabs Private Limited, a recently founded startup for startups, has also created its own Rs 15 crore corpus to fund startups incubated with them for mentoring and consulting services.
As new players have entered the venture finance space, Ahmedabad is also home to GVFL, which is widely regarded as one of the pioneers of venture capital (VC) in India.
The associate incubator of the University of Gujarat – Gujarat University Start-up and Entrepreneurship Council (GUSEC) – has funded some 80 startups since its creation. EIIE.CO, a startup incubator created by the Indian Institute of Management in Ahmedabad, has been funding and supporting startups for over a decade now.
“The idea of ​​creating DevX was to fund startups at an acceleration stage so that there was some validation of the success of their service or product,” said Umesh Uttamchandani, founder of DevX.
“After our investments in 11 startups, with three of the deals expected to be concluded by the end of July, we now plan to expand our corpus to Rs 14 crore. Now we will focus on specific areas and aim to fund at least 16 startups over the next two years, with an average ticket size of Rs 15-40 lakh of funding per startup, ”Uttamchandani added.
Several startups have mushroomed in sectors such as edtech, fintech and health technology in Gujarat.
Access to funds becomes easier, but the shortage of venture capital persists
The rise of local venture capital firms will help start-up founders to access capital more easily at an early stage. “Local venture capital firms help startup founders access capital more easily and easily. They made it much easier to launch startups from level II and III cities. We have invested in over a dozen startups in less than a year. and we are very optimistic about India’s big start-up journey into the global market, ”said Samarth Desai, partner and co-founder of Amara Ventures, who strongly believes in supporting outsiders.
“At any level, a VC or angel investor should have only one thing in mind: to help the next generation of entrepreneurs build businesses, which can challenge the strongest players in their segment. Aid can take any form, such as fundraising, finding talent and ensuring compliance, ”he added.
According to experts, early entrepreneurs used to approach investors to present their ideas or funding. With several avenues of financing available from startups, investors are now chasing entrepreneurs. This was not the case a few years ago, as funds were not readily available and start-ups had to demonstrate some success to secure funding.
Experts also believe that the shortage of venture capital continues. “As the startup ecosystem in Gujarat grows stronger day by day, we still see investors betting big at the ideation stage. There is a dearth of venture capital for innovations,” Uttamchandani said.
State Tier 1 and 2 city funders prepare to take action in startup success stories


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