Trillion Dollar Ventures (TDV) has launched its second fund, raising a total corpus of Rs 50 crore, double the size of its initial fund. This new fund is aimed at supporting early-stage tech startups in India, demonstrating the venture capital firm’s growing commitment to fostering innovation in the country. The focus is primarily on pre-seed and seed-stage companies, where TDV plans to invest with cheque sizes ranging from Rs 1-2 crore per startup. By targeting such early-stage investments, TDV hopes to nurture promising businesses during their most critical growth phases.
The new fund aims to back innovative founders, with a strong emphasis on business models that are platform-based, marketplace-driven, or involve exchange businesses. The sectors that TDV is particularly interested in include consumer tech (B2C), fintech, spirituality tech, gaming, the creator economy, social media, and consumer upgrades. These industries have shown significant growth potential, and TDV’s strategy is to identify companies that can leverage technology to disrupt traditional business models and create new opportunities.
TDV’s investment strategy stands out for its focus on serial entrepreneurs or founders with deep domain expertise. The firm prefers high-tech, low-operation businesses, which can scale rapidly with relatively lower operational costs. This approach aligns with TDV’s philosophy of investing in businesses that can generate high returns with minimal operational complexities. By partnering with experienced founders, the venture capital firm hopes to ensure that the startups in its portfolio are well-positioned to succeed in competitive markets.
The second fund is expected to have a lifecycle of 5 to 7 years, during which TDV plans to make 10 to 12 investments annually. Capital deployment for this fund will commence in the third quarter of FY25, indicating that the firm is taking a measured approach to selecting its investments. TDV’s goal is not just to provide financial backing but also to collaborate closely with the companies it invests in, providing mentorship and strategic support to help them grow and succeed.
TDV’s first fund has already shown impressive results, with exit opportunities materializing within two years of investment and generating over 60% IRR. This performance has attracted significant interest from limited partners (LPs) both in India and internationally, with commitments coming from countries such as the US, UK, UAE, and Singapore. The strong backing from LPs validates TDV’s investment model, which is centered on early-stage tech investments and a high-return potential.
Founded by Ujwal Sutaria in 2021, TDV has quickly established itself as a key player in the Indian venture capital ecosystem. The firm has already backed over 30 companies across various sectors, including fintech, gaming, spirituality tech, and consumer tech. With the launch of its second fund, TDV aims to continue its mission of investing in and nurturing innovative founders, driving the next wave of technological advancements in India.
