LC Nueva Investment Partners has just launched its second venture capital fund, the LC Nueva Momentum Fund, aimed at investing in 10 to 15 promising startups. This new fund targets a total of Rs 150 crore (about $18 million), with the potential to expand to Rs 250 crore ($30 million) through an additional greenshoe option of Rs 100 crore (around $12 million).
Building on Previous Success
The launch follows the success of their first fund, the LC Nueva Fund, which closed in 2023 with a total of Rs 350 crore. The new Momentum Fund signals a strategic shift toward investing in startups at the Series A and B stages, focusing on companies that have already shown strong growth and operational improvements.
Investment Focus and Strategy
Sohil Chand, Founding Partner and CIO of LC Nueva Fund, expressed confidence in the fund’s potential: “Our strategic focus on high-potential investments will position LC Nueva Momentum Fund for exceptional returns. By pursuing secondary market opportunities and leveraging relationships from our previous fund, we aim to navigate current market dynamics effectively.”
Exploring Secondary Market Opportunities
A significant aspect of the Momentum Fund will be exploring the Indian secondary market, which has gained traction recently. Sanket Sinha, Global Head of Asset Management at Lighthouse Canton, highlighted the growing interest in portfolio secondaries, where funds acquire entire General Partner portfolios. “In the first half of 2024, secondary stake sales accounted for 34% of transactions in the $50-500 million range for large deals,” he noted.
With this new fund, LC Nueva Investment Partners is poised to make a meaningful impact in the startup ecosystem, driving growth and innovation across various sectors.
