Cornerstone Ventures Launches a Second Fund with USD 200 Mn Corpus for B2B Enterprises The Mumbai-based firm intends to make investments in a variety of software platforms and marketplaces that serve industries like retail, consumer goods and e-commerce, financial services and insurance, distribution and supply chain, and healthcare goods and services.

By Paromita Gupta

You're reading Entrepreneur India, an international franchise of Entrepreneur Media.

(L-R) Cornerstone Ventures Investment Director Vatsal Bavishi, Managing Partner Rajiv Vaishnav, Investment Director Nainika Kakkar, Managing Partner Abhishek Prasad, Investment Director Payal Punatar Doshi, CFO Shreyas Trivedi

Cornerstone Ventures, a venture capital firm specialising in business-to-business (B2B) enterprise technology investments, announced on Tuesday the launch of its second fund with a target size of USD 200 million, including a green-shoe option of USD 50 million.

According to the official release, with the second fund, Cornerstone Ventures plans to invest ticket sizes ranging from USD 5 million to USD 15 million in a mix of early-growth and scaled startups. It intends to use the most recent capital to invest in 15 to 20 firms.

The firm intends to invest in software platforms and marketplaces that serve a variety of industries, including retail, consumer goods and e-commerce, financial services and insurance, distribution and supply chain, healthcare products and services, and sector-neutral core technology advancements.

Abhishek Prasad, Managing Partner, Cornerstone Ventures, said, "We aim to back some of the largest value creators in this space of 'Next Generation Enterprise Technologies', whether building in India for the world or building exclusively for the domestic market.

"We particularly like innovations that catalyse core business processes, tend to engage multiple stakeholders across the value chain, thus building multiple revenue streams, and have demonstrable account-level profitability. Such businesses do not require capital for sustenance but really to drive growth," he added.

With an initial investment of around USD 50 million, the firm established Cornerstone Ventures Fund-I in 2019. With a primary focus on business models, including B2B corporate software-as-a-service, the money was allocated among 21 portfolio firms.

The firm claims that it has facilitated USD 1-2 million additional annual recurring revenue for each of its portfolio companies and has been an active participant in their respective growth journeys. After around four years of investment, its first fund recovered nearly 4X growth in the cumulative revenue base across the portfolio.

The first fund was anchored by the Department for Promotion of Industry and Internal Trade's Fund of Funds (managed by SIDBI) and the Self-Reliant India Fund (managed by the State Bank of India).

Currently, Cornerstone Ventures is also in the process of onboarding large institutional investors for Fund-II.

Paromita Gupta

Entrepreneur Staff

Features Writer with Entrepreneur India

Covering news and trends in AI and Metaverse segments. An avid book reader running her personal blog on the side. You may reach me at paromita@entrepreneurindia.com. 
Leadership

How a Mindfulness Practice Can Help You Beat Tech Overwhelm

This article explores how mindfulness can transform your tech choices, ensuring technology serves your business goals without adding unnecessary complexity.

Business News

'Nobody Ever Gave Me Anything': More Boomers Say They're Not Transferring Wealth to Family Until They're Dead

A new survey from Charles Schwab found boomers are more hesitant to distribute their wealth than other generations.

Business News

Instagram Is Offering TikTok Creators Up to $50,000 Per Month For Exclusive Content

Leaked deals show that there are strict terms to receiving the money.

Business News

Here's How Much 8 CEOs Made in 2024, From JPMorgan's Jamie Dimon to Disney's Bob Iger

CEO pay is on the rise, with some making tens of millions more in 2024 than they did in 2023.

Money & Finance

3 Questions to Ask Yourself Before You Start Day Trading

Here is some practical advice for aspiring day traders, covering market timing, essential skills and risk-free learning.