Nexus Venture Partners’ Eighth Fund Focused on AI and Software

Nexus Venture Partners has successfully launched its eighth fund, which is a substantial $700 million aimed at early-stage investments in artificial intelligence, enterprise software, consumer sectors, and fintech companies in both India and the United States. Previously, the firm raised a similar amount of $700 million in 2023.

Investment Strategy and Leadership

Nexus has expressed its intention to allocate capital to ventures solely based in the US, while continuing its established strategy of supporting cross-border software firms from India. The leadership of the fund comprises general partners Abhishek Sharma and Jishnu Bhattacharjee in the US, and Anup Gupta and Sujan in India.

Capital Returns and Exits

The firm has reported returning approximately $700 million in cash through both partial and full exits over recent years, contributing to a total liquidity of between $1.5 billion to $2 billion since its inception. Notable exits from the fund include Delhivery, PubMatic, Cloud.com, Mezi, and Gluster. Additionally, Nexus has supported various companies such as Turtlemint, Zepto, Rapido, Postman, and Apollo, acquiring around 13% to 14% equity as an initial investor.

Future Focus and Goals

According to Sujan, one of Nexus’s general partners, the fund will maintain a balanced focus on both the US and India. In the scenario where the fund supports 30 companies, 15 will be dedicated to the Digital India initiative, while the other 15 will target global software. Sujan further noted that securing one or two global enterprise AI successes, along with one or two Digital India achievements, would be sufficient to yield multiple returns for the fund.

Investing in Operationally Intensive Businesses

Nexus indicates that its next phase will be defined by investments in operationally intensive businesses, such as Rapido, Zepto, and Snabbit. The firm is on the lookout for innovative opportunities particularly in areas like wealth management, payments, and lending.