Blume Ventures, an early-stage venture capital firm, has announced the first close of its third fund at $40 million. The VC firm is targeting a total corpus of $80 million and will primarily focus on Seed to Series A investments.
Sanjay Nath, co-founder and Managing Partner of Blume Ventures, says that the capital will be deployed across 30-35 companies with an average ticket size of $1 million. The firm will be looking to pick up around 15-25 percent stake in its portfolio companies. He said:
We have always been focussed on the pre-series A and series-A stages. Through this fund we will have greater reserves to support our best portfolio companies for future rounds. We are also looking to bet on opportunities that may be at the stage of ‘pre-product market fit’ if the market opportunity is significant.
The new fund will also help fuel Blume Ventures’ expansion into Delhi-NCR, and help build a new team in Bengaluru. The Bengaluru team will support Blume’s portfolio in the city, and help identify others and grow a Fund III portfolio.
Blume Ventures was founded in 2010 by Karthik Reddy and Sanjay Nath. It raised its first fund of $20 million in 2011, which was supplemented with an Opportunity Fund. It subsequently raised a $60 million Fund II in 2015.
The VC firm expects to invest around 60 to 65 percent of Fund III in domestic heavy sectors such as digital media, entertainment, commerce, brands, jobs, education, travel, healthcare, and financial services.