| March 8, 2019

Early stage investment fund YourNest is in the final stage to close its second fund, with plans to invest the money across 20-25 startups.

The total size of the fund is Rs 300 crore but there’s a greenshoe of Rs 150 crore.

“That will happen if we have over-subscription,” Girish Shivani, co-founder of YourNest told Moneycontrol.

“We are in the process of doing the final close of the fund. By June 2019 we will close the fund cycle of the current round,” he added.

Some of the limited partners (LPs) who are investing in the fund include names like SIDBI and Electronic Development Fund (EDF).

While SIDBI is which is an existing investor has committed 15 percent of the corpus, EDF, a new investor, has committed 20 percent.

Yournest will keep around $22-25 million of the second fund for investing in startups, the rest will be used for follow up rounds.

It has already invested across four startups from this fund and is in talks to invest in another six by the next couple of months.

According to a report by venture debt firm Innoven, the early stage investments in 2018, as at the end of October, stood at Rs 290 crore with an average deal size of Rs 4.4 crore.

Stressing upon the fact that entrepreneurial activity has increased in the last couple of years, Shivani said that investment funds currently have a lot of options available to chose from.

“We are more spoilt for choice than we were three years ago. There is so much of entrepreneurial activity. Two years ago I was seeing 200 deals a month. Today I am seeing 350 a month,” he said.