Physis Capital reaches first close of $50M fund
Growth-stage specific Almost a year after announcing the CAT II $50 million fund, Physis Capital, the venture capital division of the angel network Inflection Point Ventures, has reached the first closure of its first fund at $7 million. According to the firm, the fund is on schedule to complete its final close in 2024. Startups seeking pre-Series A through Series B funding by the third quarter of 2023 will get investment from Physis Capital.
"We have observed that investor interest in startup investments in the Indian startup ecosystem has remained consistent. As a result, we've seen a lot of interest in the recent months, particularly from new investors who are supporting the general partners and making their first investment with us in light of our track record, according to Ankur Mittal, partner at Physis Capital.
While the majority of the money raised by Physis Capital thus far has come from Indian investors who are part of HNIs and family offices, Mitesh Shah, Partner, Physis Capital, noted that "we are now receiving significant interest from investors across multiple international locations, including Singapore, the USA, and the UAE." He continued, "In addition to these foreign money, we are in the process of obtaining cash from institutions and starting deployment.
The sector-neutral company Physis Capital invests in pre-Series A and Series B businesses. The fund's comprehensive ecosystem of financial, technical, operational, and strategic mentoring aims to create growth stories. The Gurugram-based company wants to concentrate on effective deal sourcing and pipeline building tactics, which would let investors access special investment opportunities.
A proprietary checklist with more than 200 items will be used for the due diligence, including questions about the quality of the business, the skills of the founders, the supply chain, scalability, competition, and differentiation. According to the company, each investment's due diligence will be overseen by an experienced team with assistance from recognised subject matter experts drawn from the broad CXO network cultivated over time.
A portfolio of 15 to 20 businesses with average ticket sizes of $2.5 million is what the company hopes to develop. According to Physis Capital, it will target businesses that have a strong business model and are most likely to produce sustainable returns over the long term, and it will stay away from those that have high cash burn rates, significant capital expenditure needs, and low customer retention rates.
"We have observed that investor interest in startup investments in the Indian startup ecosystem has remained consistent. As a result, we've seen a lot of interest in the recent months, particularly from new investors who are supporting the general partners and making their first investment with us in light of our track record, according to Ankur Mittal, partner at Physis Capital.
While the majority of the money raised by Physis Capital thus far has come from Indian investors who are part of HNIs and family offices, Mitesh Shah, Partner, Physis Capital, noted that "we are now receiving significant interest from investors across multiple international locations, including Singapore, the USA, and the UAE." He continued, "In addition to these foreign money, we are in the process of obtaining cash from institutions and starting deployment.
The sector-neutral company Physis Capital invests in pre-Series A and Series B businesses. The fund's comprehensive ecosystem of financial, technical, operational, and strategic mentoring aims to create growth stories. The Gurugram-based company wants to concentrate on effective deal sourcing and pipeline building tactics, which would let investors access special investment opportunities.
A proprietary checklist with more than 200 items will be used for the due diligence, including questions about the quality of the business, the skills of the founders, the supply chain, scalability, competition, and differentiation. According to the company, each investment's due diligence will be overseen by an experienced team with assistance from recognised subject matter experts drawn from the broad CXO network cultivated over time.
A portfolio of 15 to 20 businesses with average ticket sizes of $2.5 million is what the company hopes to develop. According to Physis Capital, it will target businesses that have a strong business model and are most likely to produce sustainable returns over the long term, and it will stay away from those that have high cash burn rates, significant capital expenditure needs, and low customer retention rates.
