Gurugram-based angel investment platform Inflection Point Ventures today announced the launch of its CAT II fund Physis Capital.
Physis Capital will have a corpus of US$50 million with a green shoe option of another US$25 million and aims for its first close at US$20 million. Physis Capital will participate/lead investments in startups looking to raise pre-Series A to Series B funding rounds.
According to the statement, Physis Capital aims to build a portfolio of 15 — 20 startups with an average ticket size of US$2.5 million. It will start deploying capital post the first close. Physis Capital is in the final stage of the registration process and is awaiting approval from the Securities and Exchange Board of India.
Speaking on the development, Vinay Bansal, Partner, Physis Capital, said: “Physis Capital is the result of our deep understanding of the startup ecosystem. As an angel platform, we have led some of the most well-known and big seed and Series A rounds. Our aim is now to solidify our leadership position in the growth capital investment segment.”
“This fund is for investing in select Pre-Series A to Series B startups, to enable their success through an integrated ecosystem, consisting of technical, operational, business and strategic mentorship and support along with funding.”
Additionally, Physis Capital will be actively investing in sectors like vertical commerce, consumer tech, social/content creator, B2B SaaS and Enterprise tech.
It will also identify multi-baggers from its IPV portfolio and back them from Physis Capital. Up to 50% of the fund size will be deployed in backing proven winners from the IPV portfolio, it said.
Ankur Mittal, Partner, Physis Capital said, “We have built robust practices at IPV. Our due diligence is considered a benchmark in the industry and well respected by even the strongest VC firms. On the startups’ side, we have deep relationships with top e-cells, incubators and other angel networks, which makes us confident of high quality startups inflow. These factors backed by our study of the growth of Indian startups and strong confidence restored in us by our existing investors played a role in taking a step to launch a structured VC fund.”
According to a latest report by Nasscom, IPV was announced as one of the most active angel platforms in India in 2021. With Physis Capital, it is expected to disrupt the growth funding stage as the scale and size of investment is likely to go up.
Each investment due diligence will be led by at least 1 General Partner (Vinay, Ankur or Mitesh) supported by a team of experienced analysts and renowned subject matter experts from the extensive CXO network built over the years, the firm adds.
IPV currently has over 6000 CXOs in their network. The DD will be done through proprietary 200+ point checklist across business quality, founders’ abilities, supply chain, scalability, competition, differentiation factors and many more.