Ventures Floats Fund: Cornerstone Ventures Makes Waves with $200 Mn Second Fund Launch

• Mumbai-based VC firm Cornerstone Ventures has launched its second fund with a target corpus of $200 Mn, including a green-shoe option
• The fund will invest in early-growth stage startups with ticket sizes ranging from $5 Mn to $15 Mn, focusing on B2B tech opportunities
• Cornerstone Ventures aims to support emerging B2B Enterprise Tech opportunities and value creators in the Next Generation Enterprise Technologies space
• The firm’s portfolio companies include NimbleBox.ai, CreditNirvana, and UniAcco, among others
• According to Inc42’s Indian Tech Startup Funding Report 2023, enterprise tech startups saw a decline in funding and deals in 2023, with late-stage startups being the most impacted

Cornerstone Ventures Floats Second Fund with $200 Mn Corpus

Mumbai-based venture capital (VC) firm Cornerstone Ventures has recently made waves in the investment world by launching its second fund, aiming for a target corpus of $200 Mn, which includes a green-shoe option. This move marks a significant step forward for the firm as it expands its investment portfolio and continues to support emerging B2B Enterprise Tech opportunities.

Investment Strategy and Focus Areas

Cornerstone Ventures is set to invest ticket sizes ranging from $5 Mn to $15 Mn, with a primary focus on early-growth stage startups. The firm has outlined its investment strategy to concentrate on B2B tech opportunities across various sectors, including software platforms and marketplaces. These sectors span a wide range, from financial services and insurance to retail, consumer goods and ecommerce, distribution and supply chain, healthcare products and services, and sector-agnostic core technology innovations.

The firm’s goal is not only to provide capital to these startups but also to offer access to a large enterprise customer ecosystem, strategic funding from next-round investors, and a broad network of mentors and go-to-market partners. This holistic approach aims to create significant value for entrepreneurs beyond just financial backing.

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Key Initiatives and Vision

Abhishek Prasad, managing partner of Cornerstone Ventures, expressed enthusiasm about the launch of the second fund, highlighting its continuity from the success of Fund-I. The firm’s vision is to support and nurture some of the most promising value creators in the realm of ‘Next Generation Enterprise Technologies’, whether they are developing solutions for the global market or catering exclusively to the domestic market.

Prasad emphasized the firm’s interest in innovations that drive core business processes, engage multiple stakeholders across the value chain, create diverse revenue streams, and demonstrate account-level profitability. This focused approach underscores Cornerstone Ventures’ commitment to identifying and backing startups with the potential to reshape enterprise businesses and drive sustainable growth in a rapidly evolving technology landscape.

Background and Portfolio Expansion

Founded by former Reliance executives Rajiv Vaishnav and Abhishek Prasad, Cornerstone Ventures specializes in early-growth stage investments in B2B enterprise tech companies. The firm initially launched its first fund in mid-2019, with a size of approximately $50 Mn. Fund-I has since been deployed across 21 portfolio companies, primarily centered on the B2B enterprise SaaS business model.

Among the notable portfolio companies under Cornerstone Ventures’ umbrella are NimbleBox.ai, CreditNirvana, and UniAcco, reflecting the firm’s diverse investment interests and commitment to fostering innovation in the tech startup ecosystem.

Cornerstone Ventures’ foray into its second fund with a substantial corpus of $200 Mn signifies a vote of confidence in the potential of early-growth stage startups in the B2B tech space. With a strategic investment approach, a broad sector focus, and a track record of supporting innovative ventures, the firm is well-positioned to make a significant impact on the entrepreneurial landscape, both in India and beyond.