Physis Capital marks first close of $50 million fund
Physis Capital, the venture capital arm of angel network Inflection Point Ventures (IPV), has marked the first close of its maiden fund at $7 million, nearly a year after launching the $50 million vehicle.
The firm is looking to make the final close for the first fund in 2024, said Ankur Mittal, partner at Physis Capital.
First close is a fundraising milestone that allows private equity and venture capital firms to start deploying the capital.
The VC firm said it will actively look to invest from its first fund by the third quarter of 2023 in startups looking to raise pre-Series A to Series B capital. The fund also has a greenshoe option of another $25 million.
Physis Capital raised the capital from a mix of family offices and ultra-high net worth individuals (UHNIs), said Mittal, adding that the fund didn’t tap IPV’s existing set of investors.
While majority of funds raised by Physis Capital so far are from Indian HNIs and family offices, we are now receiving significant interests from investors across multiple international locations including Singapore, the US and the UAE. Along with these international funds, we are in the process to raise funds from institutions and commence deployment,” said Mitesh Shah, partner, Physis Capital.
The sector-agnostic fund is looking to build a portfolio of 15-20 startups with an average ticket size of $2.5 million. The fund will look to invest between $500,000 and $2.5 million as initial investment and will further back its portfolio companies in future rounds,” said Mittal.
He also said that the firm won’t necessarily invest in ‘hot areas’ as VCs often end up paying a premium to invest in such companies.
Physis Capital will invest in companies that have a solid business model and are likely to generate sustainable returns in the long term while avoiding those with high cash burn, high capex requirements, and low customer stickiness, said Mittal.
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