New VC Fund Targets US-India Startup Corridor
NuVentures, an early-stage venture capital firm founded by investor Venk Krishnan, has announced a $75 million fund to support startups with a strong India connection.
The launch of this significant $75 million fund represents a notable development in the early-stage investment landscape for Indian-connected startups. Founded by experienced investor Venk Krishnan, NuVentures is positioning itself as a specialized player focused on bridging the gap between Indian talent and global markets.
This substantial fund will provide much-needed capital to early-stage companies operating in the increasingly important US-India technology corridor, supporting innovative startups during their critical formative stages.
The firm, based in the United States, will focus on investing in AI, SaaS, and consumer technology startups that are either headquartered in India and looking at the US market or based in the US with engineering teams in India.
NuVentures has established a clear investment thesis centered on three high-growth technology sectors: artificial intelligence (AI), Software as a Service (SaaS), and consumer technology. This focused approach demonstrates the firm’s strategic concentration on areas where Indian technical talent has historically excelled.
The fund’s dual geographic approach – targeting both India-headquartered companies with US market ambitions and US-based startups leveraging Indian engineering talent – reflects the increasingly interconnected nature of the global technology ecosystem and the specific advantages of combining US market access with India’s technical capabilities.
Structured Investment Approach
Krishnan, who has been an active participant in India’s startup ecosystem since 2002, started investing with NetKraft before backing companies like Mu Sigma, BigBasket, Acko, HomeLane, Third Wave Coffee, Geist Beer, Lucidity, and Foxtale.
Venk Krishnan brings over two decades of experience in the Indian startup ecosystem, having begun his investment journey in 2002 with NetKraft. His impressive investment portfolio includes several of India’s most successful startups across diverse sectors, demonstrating his ability to identify promising companies early in their development.
His track record of backing companies like data analytics giant Mu Sigma, e-commerce leader BigBasket, insurance technology company Acko, home interior platform HomeLane, popular food and beverage brands Third Wave Coffee and Geist Beer, as well as emerging players like Lucidity and Foxtale, speaks to his versatility as an investor and deep understanding of the Indian market landscape.
Previously, his approach was largely that of an angel investor, selecting startups based on founder passion and market potential. With NuVentures, the firm has evolved into a structured investment entity, offering not just capital but also market access and strategic value-adds.
Krishnan’s evolution from angel investor to venture capital fund manager marks a significant shift in his investment approach. While his earlier investments were primarily guided by founder characteristics and market opportunity assessments, NuVentures represents a more formalized and comprehensive investment strategy.
This transition from individual angel investing to establishing a structured venture capital firm reflects both Krishnan’s personal growth as an investor and the maturing of the Indian startup ecosystem, which increasingly demands not just capital but also strategic support and market access from investors.
“We will take our startups directly to our customers to get real market feedback, including a proof of concept (PoC),” Krishnan told YourStory.
Krishnan’s commitment to providing portfolio companies with direct access to potential customers highlights NuVentures’ hands-on approach to startup development. By facilitating proof of concept (PoC) opportunities, the firm helps bridge the critical gap between product development and market validation.
This active involvement in customer acquisition and feedback collection distinguishes NuVentures from more passive investment firms and addresses one of the most significant challenges faced by early-stage startups – securing initial customer validation and traction.
NuWare, a New York-based technology company founded by Krishnan, will serve as a bridge between NuVentures’ portfolio startups and potential customers across sectors like financial services, retail, and healthcare.
Leveraging Krishnan’s existing technology company, NuWare, creates a strategic advantage for NuVentures’ portfolio companies. This New York-based entity will function as an operational bridge connecting startups with potential customers in key sectors including financial services, retail, and healthcare.
This synergistic relationship between NuWare and NuVentures demonstrates the fund’s ability to offer unique value beyond capital, providing startups with tangible pathways to market validation and customer acquisition across multiple industry verticals.
According to Krishnan, one of the biggest challenges for startups is securing early customers.
Krishnan’s identification of early customer acquisition as a primary challenge for startups reflects his practical understanding of the entrepreneurial journey. This insight has clearly shaped NuVentures’ value proposition, which extends beyond financial investment to include active support in overcoming this critical hurdle.
By focusing on this specific pain point, NuVentures positions itself as a strategic partner for startups at their most vulnerable stage – when they have developed a product but have yet to achieve market validation through paying customers.
Investment Focus and Strategy
NuVentures will invest in four to five startups per year, with investment sizes ranging from $250,000 to $750,000. The fund has already secured commitments from high-net-worth individuals (HNIs) and a Fund of Funds in the US. It has also made investments in four startups, including one founded by Carnegie Mellon University alumni and another backed by Y Combinator, Pivot Robotics.
The firm’s disciplined investment pace – targeting just four to five startups annually – indicates a highly selective approach that allows for meaningful engagement with each portfolio company. The investment range of $250,000 to $750,000 positions NuVentures in the early-stage funding segment, typically covering seed to early Series A rounds.
NuVentures has already demonstrated its investment thesis in action, having backed four promising startups. The diversity of these investments, including a startup founded by Carnegie Mellon University alumni and Y Combinator-backed Pivot Robotics, reflects the fund’s ability to access high-quality deal flow from prestigious sources.
The firm has successfully secured financial commitments from both high-net-worth individuals and an institutional Fund of Funds in the US, validating its investment approach and providing a solid financial foundation for its operations.
With the Indian startup ecosystem facing a funding slowdown, Krishnan believes that venture capital firms are becoming increasingly selective. “Investors now want to see a clear path to revenue or profitability before committing funds,” he noted.
Krishnan’s observation about the current funding environment reflects the broader market reality of a significant slowdown in venture capital deployment across the Indian startup ecosystem. His assessment that investors are becoming more selective and focused on clear paths to revenue or profitability indicates a shift away from the growth-at-all-costs mentality that characterized earlier funding cycles.
This perspective suggests that NuVentures is well-aligned with current market conditions, adopting a pragmatic approach that emphasizes sustainable business models and realistic paths to financial viability rather than merely pursuing rapid growth and scale.
Unlike many VC firms, NuVentures will not charge a large management fee, and investors will have the flexibility to decide which startups they want to back.
NuVentures’ fee structure represents a departure from traditional venture capital models, offering a more investor-friendly approach with lower management fees. This structure potentially allows for better alignment between the fund’s economics and investor returns.
The flexibility offered to investors to select specific startups for their capital allocation introduces elements of a syndicate or special purpose vehicle (SPV) approach within the fund structure. This hybrid model gives limited partners greater control over their investment exposure while still benefiting from the fund’s deal sourcing, due diligence, and portfolio support capabilities.
The firm has also expanded its decision-making team, moving away from Krishnan’s solo investment approach. Three new partners—Visveswaran Kartik, Neel Mukerji, and Prabhakar DJ—have joined NuVentures to bring collective decision-making to the firm’s investment strategy.
The expansion of NuVentures’ leadership team to include three additional partners marks an important evolution in the firm’s governance and decision-making processes. By transitioning from Krishnan’s individual investment approach to a collaborative partnership model, the firm gains diverse perspectives and broader expertise.
The addition of Visveswaran Kartik, Neel Mukerji, and Prabhakar DJ to the partnership creates a more robust investment committee structure, potentially leading to more thorough due diligence and balanced investment decisions. This collective approach to investment strategy development and execution positions NuVentures for more sustainable long-term growth as an institution rather than remaining dependent on a single decision-maker.
Also read – Government Seizes Substandard Products From Amazon And Flipkart Warehouses
