Bengaluru-headquartered venture capital firm Season 2 Ventures (S2) remains in advanced phases of discussions to invest in 12 startups in the next one year from its first $100 million fund. Following which, the company would look at raising a 2nd fund of about $350-400 million.
S2 will invest in $500,000 -5 million in various business-to-business (B2B) start-ups with one investment per month.
The firm remains in talks with a number of startups in Banking and Financing Services and Insurance coverage, health care, retail and logistics and energy and sustainability area, its Handling Partner Sajan Pillai informed BusinessLine
” I think that endeavor funds have a long-lasting spectrum of 5-7 years with regard to planning and thus, the short terms problems do not matter when it comes to fund performance. At S2, we evaluate how will our financial investments carry out in the long run, and the existing pandemic does not impact our choices,” he said.
The company is making an undisclosed seed round of funding in Bengaluru-based Storage facility Now, a warehousing startup, which is expected to announce this week. Storage facility Now, which has presence in about 100 cities, will use the funds to scale up operations.
S2, an Indo-US corridor VC firm, has also made six early-stage financial investments in India, consisting of in payment startup Uvik, air pollution screen firm Ambee, personal information management company Ozone.ai, dedicating an overall of $15-20 million.
Second fund in 18 months
S2 will raise its next fund in the next 18 months, after tiring today $100 million fund.
” This would be around $350-$400 million with a focus on B2B start-ups as the very first one. Our company believe that even with the first fund, we are only scratching the surface. There is a significant amount of growth potential,” Pillai said.
” One of the largest sources of exit comes from customers themselves. The second category of exits is major purchasers such as Microsoft, Google, Amazon and Salesforce, and lastly, the future rounds and IPO are other possible exits,” he added.