Cactus Partners Targets Rs 1,600 Crore for Second Fund

Early-stage venture capital firm Cactus Partners is setting its sights on a corpus of Rs 1,600 crore for its upcoming second fund, aiming to invest in 13 to 15 startups in the coming years. As reported by Financial Express, in a conversation with Cactus Partners General Partner Amit Sharma, the firm intends to start with initial investments ranging from Rs 60 to 100 crore, primarily focusing on businesses raising between $10 to $20 million. They plan to take the lead in funding rounds, contributing $6 to $10 million and coordinating the remaining capital with other investors.

Investment Focus Areas of Cactus Partners

Cactus Partners engages in investments across various sectors such as advanced manufacturing, enterprise technology, and consumer technology. The firm’s primary focus areas encompass robotics, semiconductors, defence, spacetech, electronics manufacturing, artificial intelligence, machine learning, cybersecurity, healthtech, and vertical software.

Performance of the First Fund

The initial fund of Cactus Partners, which boasts a corpus of Rs 630 crore, has been successfully allocated to 13 companies, which include prominent names like Lohum, Bellatrix Aerospace, Kapture CX, Indigrid Technologies, and Brandworks. In the last 15 months, the firm has made new investments in Bellatrix Aerospace, Showroom B2B, and Brandworks Technologies, in addition to participating in follow-up investment rounds for existing portfolio companies.

Strategic Investment Philosophy

The firm prioritises startups that demonstrate a verified product-market fit, sustainable unit economics, and long-term growth possibilities, rather than following trends in high-valuation sectors. Additionally, Cactus Partners is exploring potential investments in the fields of cybersecurity and quantum technologies.