• 2am VC has launched its second fund, targeting $25 million to invest in up to 30 Indian startups primarily in the pre-seed to seed stages.
  • The focus is on sectors such as consumer tech, fintech, food and beverage, artificial intelligence, and SaaS.
  • The fund will allocate 60% for initial investments and 40% for follow-on funding, aiming to provide comprehensive support to startups as they grow and scale.

Early-stage venture capital firm 2am VC has officially announced the launch of its second fund, aiming to raise $25 million (approximately ₹215 crore) to invest in up to 30 Indian startups, primarily in the pre-seed to seed stages.

This new fund will focus on sectors such as consumer technology, fintech, food and beverage, artificial intelligence (AI), and software-as-a-service (SaaS).

The fund's investment strategy allocates 60% of its capital for initial investments in promising startups, while the remaining 40% is reserved for follow-on investments. This approach is designed to provide ongoing support to portfolio companies as they scale their operations and navigate market challenges.

Founded by Hershel Mehta and Brendan Rogers, 2am VC operates across major Indian cities including Mumbai, Bengaluru, and Delhi NCR, as well as in Los Angeles. The firm previously launched its first fund in 2021 with a target corpus of $10 million and has since invested in 47 startups. Notable investments include NEWME, Apna Mart, Blitzllama, ProcureYard, Inframandi, and Karbon Card.

Hershel Mehta emphasized the firm's commitment to supporting founders by acting as both hyperlocal and hyperglobal partners. He stated that 2am VC goes "above and beyond" to help entrepreneurs by facilitating key relationships, acquiring customers, and providing targeted guidance aimed at achieving product-market fit.

Brendan Rogers added that the firm seeks to challenge outdated perceptions about India's venture ecosystem and aims to empower young Indian founders who are building uniquely local businesses.

The Growing Early-Stage VC Landscape in India

The launch of 2am VC's second fund comes at a time when the Indian early-stage funding ecosystem is experiencing significant momentum. Earlier this month, Prime Venture Partners announced its fifth fund with a target of $100 million for early-stage investments ranging from $2 million to $4 million per startup.

Additionally, A Junior VC closed its first fund focused on pre-seed investments in various sectors, including AI and consumer tech.

As India’s startup landscape continues to evolve rapidly, 2am VC’s new fund is poised to play a crucial role in nurturing the next wave of innovative entrepreneurs.

By providing not just capital but also strategic support and mentorship, the firm aims to solidify its position as a key player in the Indian venture capital scene.

Edited by Harshajit Sarmah