The Bengaluru-based venture capital (VC) company Transition VC has launched its first fund with a total value of INR 400 Cr (approximately $49 Mn) in addition to an option of another INR 200 Cr ($24.5 Mn). This fund will fund startups in the clean technology industries of mobility, green hydrogen, energy storage, net zero, and climate tech. (1)
Plans of Transition VC
During the next three years, the venture capital business will use its first fund to provide financial assistance ranging from half a million dollars to one million dollars to as many as forty early-stage startups.
Transition Venture Capital, based in Bengaluru, will invest in forty early-stage firms spanning various industries, including climate technology, electric transportation, green hydrogen, energy storage, and net zero journeys in buildings.
In a release, the venture capital firm stated that the corpus would be invested over the following three years, with ticket sizes ranging from $500,000 to $1 million. Global startups will receive an allocation of 25 percent of the fund's total value.
Additionally, Transition VC has worked with incubators, accelerators, venture capital firms, and corporations in the new energy domain. These entities can work with companies to jointly run pilot projects and assist them in expanding their businesses.
Received SEBI Approvals
Recently, SEBI, the company that regulates India's capital markets, gave its blessing to the venture capital firm. It is anticipated that the fund will have its first close before the conclusion of the calendar year 2022.
Raiyaan Shingati, Mohammed Shoeb Ali, Mustafa Wajid, Naresh V Narasimhan, Tejas Goenka, Saif Qureishi, and Rajesh Doshi were among the company owners and executives who collaborated in 2021 to establish Transition VC. Other founding members included Mustafa Wajid. Shingati and Ali are the ones in charge of the fund.
Before creating Transition VC, the team invested in several early-stage companies within the electric-mobility industry. These companies included Charge+Zone and Exponent Energy, which operate charging infrastructure for electric mobility.
"Climate change and the shift to renewable energy present a business opportunity, as both processes require the reinvention of every facet of the economy. We are at the start of a brand-new age right now! We don't see major shifts like this very frequently. Still, one is beginning to take shape right now, and it will have a profound impact on how people use energy for the next several decades "Shingati, a managing partner at Transition VC and a co-founder of the company, said.
According to Transition VC, its first fund is attracting increasing interest from high-net-worth individuals (HNIs) in India and worldwide, family offices, and corporations specializing in strategic investments.
According to the statement made by the VC company, the fund is seeking limited partners (LPs) from an exclusive pool of investors who have a strong understanding of this field and are in agreement with its goal.
"Our goal is to bring together the most talented engineers, innovators, and like-minded partners who can assist in developing a brighter future for all," "said Transition VC's general partner Wajid.