Dallas Venture Capital (DVC), a VC firm based in Dallas and Hyderabad, has closed an $80 million fund for early-stage B2B SaaS firms called the B2B SaaS Fund II.
The DVC India Fund 1 is a separate fund that the VC firm is raising in India. The fund aims to raise $50 million for Indian companies and has already raised $20 million.
DVC India Fund 1 has already invested in Disprz, an enterprise skilling firm, and IntelleWings, an anti-money laundering startup.
The US Fund II will invest alongside Dallas Venture Capital’s $50 million India fund, according to the company. Over the next 4-5 years, Dallas Venture Capital expects to invest $130 million in B2B SaaS firms through both funds.
DVC will focus on B2B SaaS firms in the early and growth stages, with a focus on deep tech in the cloud, AI/ML, XR, Data, and other new technologies.
Over the next 4-5 years, the VC firm expects to invest in one company per quarter, for a total of about 20-25 enterprises. DVC often invests in startups after they have achieved post-product market fit, intending to allow them to scale.
DVC, which was founded in 2020 by Dayakar Puskoor and former Wipro CEO Abidali Neemuchwala, has already invested in 27 startups in India and the United States.
Neemuchwala said, “We partner with our portfolio companies as mentors offering strategic guidance during the most important phase of the startup’s journey to accelerate their revenues from $1 Mn to beyond $10 Mn through our time tested and honed DVC Advantage program leveraging our network of venture partners and advisors.”
Two venture capital firms — Eight Roads Ventures and Jungle Ventures – closed funds last week, while Sequoia decided to postpone its fund closure.
Eight Roads raised $250 million for health tech businesses, while Jungle Ventures raised $600 million for startups in India and Southeast Asia.
Sequoia Capital, on the other hand, has put back the closing date of its $2.8 billion India and Southeast Asia fund due to financial irregularities and corporate governance difficulties at several of the startups it supports.
Many venture capital firms have already raised concerns about the predicted slowdown in startup funding.
Y Combinator warned its startup founders last week to “prepare for the worst” and make sure their businesses survive the forthcoming funding slowdown. The early-stage investor also recommended that firm owners set a goal of “Default Alive” achieving profitability with current resources before running out of cash.
Similarly, Sequoia created a 52-slide presentation deck titled “Adapting To Endure” this week to help company owners adjust in the face of decreasing funding and fears of a worldwide recession.
“This is not a time to panic. It is a time to pause and reassess,” Sequoia advised.