Tanglin Ventures, a prominent venture capital firm led by Ravi Venkatesh, is setting its sights on raising $250 million for its third fund. The firm, which has grown its reputation for investing in high-potential startups, is gearing up for another milestone after successful fundraises in recent years.
This new fund is expected to expand Tanglin’s reach in sectors like fintech, SaaS, supply chain, and direct-to-consumer brands. As the firm continues to carve out its niche in the venture capital world, it aims to build on its previous success, securing investments that will fuel the next generation of innovative companies.
Tanglin Ventures’ Growth and Track Record
Tanglin Ventures has quickly made its mark in the venture capital scene since its founding by Ravi Venkatesh, a former Tiger Global executive. The firm closed its first fund in 2019, raising $51 million, followed by a second fund in 2022 with a slightly smaller raise of $45 million. Despite these relatively modest fund sizes, Tanglin has managed to invest in more than 20 companies, with a typical cheque size of up to $8 million.
The firm’s portfolio boasts a range of high-growth companies, including Pocket FM, Moglix, Sugar.fit, Good Flippin’ Burgers, and Rupeek. Tanglin’s approach has proven effective, and the firm continues to attract attention for its successful track record of identifying promising startups and helping them scale.
What sets Tanglin apart is its strategy of investing in sectors that show long-term growth potential. Whether it’s fintech or SaaS, the firm has been able to back companies that are transforming their respective industries. As its portfolio expands, so too does the firm’s influence within the venture capital ecosystem.
The $250 Million Goal: Aiming Higher
Tanglin’s third fund marks a significant leap from its previous funds. With a target of $250 million, the firm is aiming to increase its capital base substantially. This move reflects both the growth of Tanglin and the increased demand for its expertise in the investment world.
The firm’s focus remains on investing in high-potential sectors that include business products and services, supply chain innovations, and other tech-driven industries. By targeting these rapidly growing areas, Tanglin is positioning itself to take advantage of the changing dynamics in global markets, especially in emerging economies like India and Southeast Asia.
The new fund will likely allow Tanglin to increase its stake in existing portfolio companies while also making new investments in sectors poised for growth. The venture capital firm’s expertise in identifying transformative startups will be key as it seeks to expand its influence even further.
Notable Investments and Key Partners
Tanglin Ventures’ growth has been supported by its robust roster of limited liability partners (LLPs), including influential figures like Kalyan Krishnamurthy, CEO of Flipkart Group, and Sujeet Kumar, co-founder of Udaan. The backing of these notable business leaders has added credibility to Tanglin’s approach and opened doors to strategic opportunities in the startup ecosystem.
Tanglin’s recent investments show the firm’s commitment to nurturing the next wave of innovative companies. For instance, it participated in a $6.5 million Series A round for Master Chow, an emerging brand in the food and beverage industry. The firm also led an $8.9 million funding round for Ennoventure, a company focused on sustainable solutions, and invested in Beco, a fast-growing direct-to-consumer brand, during its $10 million funding round.
These investments highlight Tanglin’s interest in diverse sectors, from consumer goods to sustainability-focused startups. The firm’s ability to back companies at different stages of growth has enabled it to build a well-rounded portfolio that’s set to deliver strong returns.
A Competitive Landscape for Investment Firms
Tanglin’s new fund comes at a time when several other venture capital firms are also gearing up for substantial raises. Notably, Accel launched a $650 million fund earlier this year focused on early-stage startups, while Avendus Future achieved its first close with commitments of $100 million. Other firms like Cornerstone Ventures and Riceberg have also made headlines by announcing fund raises, indicating a highly competitive venture capital landscape.
As competition in the venture capital space intensifies, firms like Tanglin will need to remain agile, tapping into new investment opportunities while also nurturing existing portfolio companies. With more players in the field, the focus on identifying the next big startup becomes even more crucial.
Despite the competitive landscape, Tanglin Ventures has managed to carve out a niche for itself with its strong team, strategic approach, and focus on high-growth sectors. As the firm moves forward with its $250 million fund, it will continue to be an important player in the Asian venture capital market.
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