3one4 Capital Closes Its Fourth Fund At $200 Million Fund IV is the firm's fourth early-stage fund launched and continues 3one4 Capital's flagship early-stage venture capital strategy
By Teena Jose •
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Bengaluru-based early-stage venture capital firm, 3one4 Capital, has closed its fourth early-stage fund (sixth fund overall) at $200 million. The fund was claimed to be vastly oversubscribed within a timeframe of 2.5 months since the inception of the raise process. Fund IV is the firm's fourth early-stage fund launched and continues 3one4 Capital's flagship early-stage venture capital strategy.
"We are building 3one4 Capital to be the leading Indian homegrown venture capital firm, and this requires us to set an example of decadal discipline and consistent performance. We are grateful to our investors for endorsing our decision to maintain our intentional approach in the Indian early-stage. Our investor base now combines an intellectually diverse and globally oriented pool of resources that provide a purposeful competitive edge to the firm and its portfolio companies," said Pranav Pai, partner, 3one4 Capital.
The firm has raised six funds so far and is amongst the fastest-growing VC firms in India. Fund IV will be the sixth fund raised by the firm. In total, the firm will manage INR 3,710 crore of committed capital and over INR 6,000 crore in assets under management. The cumulative market cap of the companies in the portfolio is over $7.5 billion. The first close of Fund IV was completed in March 2023, and over five deals have already been approved or invested in. The final close is expected by the end of Q1 FY 2023-24. Fund III (2020 vintage) was also vastly oversubscribed from its initial $150 million target and completed its final close at $200 million as the final size. Fund IV stays the same size, having now established 3one4 Capital's early-stage strategy going forward, according to an official statement by the company.
The firm's deep involvement model is designed to help founders optimise for sustainable growth by serving as a force multiplier on the path towards defensible long-term value creation. Once invested, the firm works through a deep involvement strategy with founding teams and subject-matter experts to prioritise and strategize for product-market fit, and then optimise for defensibility and growth in revenue and impact, it further noted.
3one4 Capital has specialised in utilising its deep access to strategic corporations and investors in building ground-up theses that pre-empt the mainstream while exploiting macro trends.
