Ahmedabad-based micro VC firm Volt VC launches Rs 45 crore inaugural fund

Ahmedabad-based micro venture capital firm Volt VC has launched its first fund, Volt VC Fund-1, with a target corpus of Rs 45 crore.

The inaugural fund is designed to support consumer-centric startups in India, specifically at the pre-seed stage.

The firm aims to fill a significant gap in the venture capital landscape by providing smaller ticket sizes to startups that do not require large-scale funding but still need essential resources and strategic guidance to grow.

Investing in 20 to 25 startups

Volt VC Fund-1 plans to invest in 20 to 25 startups with a focus on direct-to-consumer (D2C), business-to-consumer (B2C), and business-to-business-to-consumer (B2B2C) models.

The investment amounts will range between Rs 50 lakh and Rs 2 crore per startup.

The fund is a SEBI-registered Category II Alternative Investment Fund (AIF), and it aims to support a new generation of entrepreneurs who are building innovative, consumer-focused businesses across various sectors.

Addressing the funding gap

Param Patel, General Partner of Volt VC, highlighted the critical need for pre-seed funding in India, stating, "In India, lately we have seen a good number of pre-seed and seed funds coming in, but several of them have ticket sizes of between Rs 4 crore and Rs 10 crore. However, many of these startups don’t have the appetite to take in that much money. So, there was a need for someone to enter with a smaller ticket for a smaller stake."

Patel’s vision is to bridge this gap by providing the necessary funding and support to startups that are not yet ready for larger investments.

Focus on Gujarat

Volt VC, while based in Gujarat, is not limiting its scope to local startups. However, the firm expects significant interest from Gujarat-based startups due to the region's strong support for startup development.

“Gujarat has consistently ranked at the top in startup development, with strong government support through infrastructure and grants. However, there has been a noticeable lack of micro VC funds to support startups at the pre-seed stage. This gap inspired the launch of Volt VC, the first Micro-VC from Gujarat," Patel added.

Future plans

Volt VC plans to close its first fund within the next three to four months. The firm also plans follow-on investments in approximately five startups from the first fund as they progress to the seed stage.

Within the next 12 months, Volt VC aims to strengthen its presence in the super early-stage investment landscape by continuing to support promising startups across various sectors.