Did the funding headwinds finally relent in 2024, paving the path for startup growth? The previous year might not have presented a booming picture for all. But a close look revealed funding growth in certain stages. For instance, India’s startup ecosystem saw a surge in seed stage funding, reflecting growing investor confidence in early stage ventures. Seed stage startups secured around $893 Mn, a 31% increase from the $681 Mn raised in 2023.

Despite the rise in funding, seed stage deals declined by 7% to 433 in 2024 from 467 in 2023. It suggests a trend towards larger investment per startup, as evidenced by the 25% rise in average ticket size to $1 Mn.

Nevertheless, the overall environment indicates a growing momentum, and institutional investors are quick to leverage it. Take, for example, All In Capital, a pre-seed (and seed stage) venture capital firm, which recently launched its second fund targeting INR 200 Cr. This comes with an INR 100 Cr greenshoe option, bringing the total corpus to INR 300 Cr. The firm has secured a first close at INR 85 Cr ($11.6 Mn), with investments from family offices in India and abroad.

All In Capital was set up in 2022 by Kushal Bhagia, founder of an edtech startup, former director at upGrad and former CEO of First Cheque. He was joined by Aditya Singh, former principal at Stride Ventures. Their motto: Going all in for founders who go all in.

Its Fund II is set to invest in 50 startups in the next three years, with individual funding of INR 5 Cr or less. While All In Capital maintains a sector-agnostic approach, it will prioritise investments in consumer tech, deeptech, fintech, and consumer brands. Notable portfolio companies to date include Taakat (FMCG), MedMitra (AI solutions for healthcare professionals), Spill Games (mobile gaming), Krvvy (shapewear and lingerie) and Mixar (AI-driven 3D modelling and animation).

The 11 Mn corpus of its first fund (INR 95 Cr) has been nearly deployed across 51 startups. The portfolio includes NewMe, SuperNova, Pier Sight, MeetRecord, Hectar Global, Magma, Salty, Reint, Karban and Volt Money, among others. “Approximately half of these companies have secured follow-on funding from prominent investors like Accel and B Capital, which has bolstered investor confidence and paved the way for Fund II,” said Bhagia.

All In Capital will continue to back early stage founders with capital, mentorship and access to a robust network of more than 150 startup founders. During an interaction with Inc42 as part of the Moneyball series, Bhagia outlined the firm’s strategy for Fund II — Larger cheques, bigger stakes and leading investment rounds for greater impact.

Reflecting on his transition from entrepreneurship to venture capital, Bhagia talked about his role at First Cheque, a scout fund that targets pre-seed startups through a network of founders. This model, inspired by similar initiatives in Silicon Valley, was among the first of its kind in India (more on that later).

The Genesis Of All In Capital: How The Journey Unfolded

In 2017, Bhagia was running his edtech startup, Nayi Disha Studios, but the business failed to grow as anticipated. The setback led him to join another edtech giant, upGrad, where he experienced rapid growth — hundreds of employees and a significant rise in revenue within two years.

Although it was a rewarding journey, he soon realised that he thrived in smaller teams and preferred the challenge of building a business from the ground up. After leaving upGrad, he explored new ventures — testing ideas, conducting pilots and engaging with potential cofounders. However, none of these opportunities worked out.

Around the same time, IndiaQuotient incubated First Cheque, a pre-seed investment initiative for startup founders at the earliest stage of their entrepreneurial journey. Recognising Bhagia’s background as a founder and his experience in scaling a company, the investment firm approached him to lead First Cheque. “Once I started, I realised I loved the work. It felt natural, like a fish-in-water moment,” he reflected.

As CEO of First Cheque, Bhagia spearheaded investments using a model inspired by Silicon Valley’s scout funds, where established venture firms back founders who identify and recommend investment opportunities. IndiaQuotient came up with the vision and the capital, while Bhagia executed the strategy.

The programme quickly established a strong network of founders, including leaders from Sharechat, TaxiForSure, MPL and MindTickle. When any of the founders in its network recommended a startup, First Cheque would co-invest, contingent upon that founder putting in at least INR 5........

© Inc42