Early Stage VC Leo Capital announces First Close of $125 Mn Third Fund

Investment Tech

Singaporean early-stage VC firm Leo Capital has seen the first close of its third fund. The fund was announced in November 2021 and aims for a total corpus of $125 million.

The venture capital firm’s parent company has offered $125 million to its third fund, according to its regulatory filings. The filing also showed that the full amount has not been raised, indicating that Leo Capital’s third fund is yet to be finalized. A VCCircle report had earlier also quoted sources about the development of the first close of Leo Capital’s third fund.

Founded in 2017 by former Pine Labs, GlobalLogic & Sunstone Education founder Rajul Garg and serial investor Shwetank Verma, Leo Capital has previously closed two early-stage funds totalling $106 million in investments in 30+ startups. Some of the startups in his portfolio include logistics startup Vahak, social commerce startup Sheroes, digital gold lending startup IndiaGold, deeptech LambdaTest and gaming startup Bombay Play.

The third fund will have a total corpus of $125 million and will support consumer technology-based businesses, SaaS startups and nearly 150 startups across health tech, fintech, insurtech, edtech, Web3, logistics and more.

With the third fund, the VC firm will invest from $500,000 to $2 million in pre-series A and seed rounds in Indian and Southeast Asian startups.

An early-stage startup fund in the middle of a nail-biting winter
Leo Capital’s funding comes at a time when India’s startup ecosystem is plagued by a funding winter where the only emerging winners are fledgling startups. The Meesho-backer joins a growing list of investment firms raising early-stage funds amid a global economic downturn and caution in investing in late-stage companies.

Of the total $19 billion raised in the first half of 2022, late-stage funding fell 52% from the previous half, according to a report. On the other hand, early-stage startups earned $1.4 billion, a 75% year-over-year increase.

Recently, several venture capital firms have announced their funding to support startups in the early stage segment in India. Some of the names include the INR 90 Cr Yatra Angel fund focused on fintech, First Check’s $5 million fund, Merak Ventures’ $100 million first fund and more.

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