Aum Ventures Fuels Deep Tech with $80M Fund

Early-stage venture capital firm Aum Ventures announced the first close of its India Innovation Fund II, securing Rs 225 crore. The fund aims for a total corpus of Rs 750 crore (approximately $80 million) and will focus on early-stage startups developing intellectual property-led technology solutions from India for global markets.

Participation in the first close included a significant portion from international limited partners across the US and the Middle East, comprising over 65% of commitments. Investors also included family offices, entrepreneurs, and strategic investors, demonstrating broad confidence.

The fund intends to support its portfolio companies with access to global markets, strategic partnerships, talent acquisition, and industry expertise. Geographic focus for support includes India, the US, Israel, and the Middle East.

Investment sectors for Fund II are diverse, encompassing space tech, artificial intelligence, semiconductors, aerospace, defense tech, robotics, energy transition, and advanced manufacturing. The firm will primarily invest at the pre-seed and seed stages, with initial investments ranging from $750,000 to $2 million, and will reserve capital for subsequent Series A and B rounds.

Aum Ventures plans to invest in 25-30 companies over the fund's lifecycle. The firm has a track record, having been an early investor in Skyroot Aerospace. Fund II builds on the success of their first fund launched in 2023, which has reportedly achieved a gross MOIC of 2.23x and a gross IRR of 53%, including an exit from Sharang Shakti.

This initiative aligns with a broader trend of Indian VC firms launching dedicated deep tech funds. Other recent examples include Shastra VC's $100 million fund, the IIT Madras Unicorn Frontier Fund I, and Piper Serica's Bharat Tech Fund, indicating growing investor interest in India's R&D and innovation capabilities.