Ahmedabad-based Volt VC, a micro venture capital firm, has launched its inaugural fund, Volt VC Fund-1, with the goal of raising Rs 45 crore. This fund is designed to invest in approximately 20-25 consumer-centric startups at the pre-seed stage across various sectors, particularly focusing on direct-to-consumer (D2C), business-to-consumer (B2C), and business-to-business-to-consumer (B2B2C) models.
In India, the availability of pre-seed and seed funds has increased, but many of these funds offer larger ticket sizes ranging from Rs 4 crore to Rs 10 crore. However, not all startups require such large investments. Recognizing this gap, the general partner of Volt VC, Param Patel, noted the need for smaller investment sizes that align with the needs of early-stage startups.
Based in Gujarat, Volt VC expects strong interest from local startups seeking their first round of institutional funding. The fund plans to provide investment amounts between Rs 50 lakh and Rs 2 crore, with capital sourced from ultra-high-net-worth individuals, entrepreneurs, and startup founders. The fund is expected to close within the next three to four months.
Additionally, Volt VC plans to make follow-on investments in around five of the most promising startups from the first fund as they advance to the seed stage.
This launch is part of a broader trend in India, where new domestic funds and micro venture capital firms are emerging to support startups at very early stages with smaller investments compared to traditional VC firms.
