Volt VC, an Ahmedabad-based micro venture capital firm, has launched its first fund, Volt VC Fund-1, with a target corpus of Rs 45 crore.
The inaugural fund is designed to support consumer-focused startups in India, specifically at the pre-seed stage.
The firm aims to fill a significant gap in the venture capital landscape by offering smaller ticket sizes to startups that do not require large-scale funding, but still need essential resources and strategic guidance to grow.
Invest in 20 to 25 startups
Volt VC Fund-1 plans to invest in 20 to 25 startups with a focus on direct-to-consumer (D2C), business-to-consumer (B2C), and business-to-business-to-consumer (B2B2C) models.
The investment amounts will range between Rs 50 lakh and Rs 2 crore per startup.
The fund is a Category II Alternative Investment Fund (AIF) registered with SEBI and aims to support a new generation of entrepreneurs who are building innovative, consumer-centric businesses across diverse sectors.
Addressing the funding gap
Param Patel, General Partner at Volt VC, highlighted the critical need for seed funding in India, saying, “In India, we have seen a good amount of seed and pre-seed funding coming in of late, but several of them are in the Rs 400-1000 crore range. However, many of these startups do not have the appetite to raise that much money. So, there was a need for someone to come in with a smaller amount for a smaller stake.”
Patel’s vision is to bridge this gap by providing the necessary funding and support to startups that are not yet ready for larger investments.
Focus on Gujarat
Volt VC, though based in Gujarat, does not limit its reach to local startups. However, the firm expects significant interest from Gujarat-based startups due to the region’s strong support for startup development.
“Gujarat has always been at the top of the list for startup development, with strong government support through infrastructure and grants. However, there has been a notable lack of micro VC funding to support startups at the pre-seed stage. This gap inspired the launch of Volt VC, Gujarat’s first micro VC,” added Patel.
Future plans
Volt VC plans to close its first fund in the next three to four months. The firm also plans to make follow-on investments in about five startups from the first fund as they move into the early stage.
Over the next 12 months, Volt VC aims to strengthen its presence in the early-stage investment landscape by continuing to support promising startups across a variety of sectors.
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