Hyderabad, an India-based venture capital firm, Pavestone has completed the final close of its Pavestone Technology Fund, which has raised a total of INR 816 crore.
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“The fundamental thesis of the fund is that we want to focus on enterprise technology, specifically companies that solve problems for large and public enterprises in the B2B space. That’s about 80% of our fund,” V Laxmikanth, managing partner at Pavestone said.
“The remaining 20% is invested in what we call moonshot or frontier technologies, which involve cutting-edge engineering or scientific innovation,” he said.
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The firm raised the corpus twice through the green shoe option, eventually revising it to Rs 900 crore from an initial target of Rs 600 crore.
Pavestone intends to use this fund to invest in 14 to 15 early-stage business-to-business (B2B) technology companies, with an average check size of $5 to $10 million.
“I think what we discussed from a strategy perspective was right. People like that strategy. And this strategy is not about investing in the flavor of the season; it’s about investing in companies that will build real-world businesses,” Laxmikanth said, highlighting the response from its investors.
“What we believe is that we need to use time-tested investing principles, which means conducting rigorous analysis, having strong risk management, and ensuring impeccable governance. These should be the cornerstones of any fund,” he added.
The widespread decentralization of data and application decomposition, combined with the expansion and virtualization of digital touchpoints and increased AI capability, will force enterprises to reinvest.
The discovery and support of startups that can help transform an enterprise will provide a unique opportunity for its investors to participate in the company’s growth journey. When it comes to investment decisions, the fund is focused and selective. The Management Team
About Pavestone
Pavestone is a venture capital firm that invests in startups developing products that aim to reinvent enterprise operations. With a target corpus of INR 700 crore, its SEBI-regulated Pavestone Technology Fund is uniquely positioned to benefit from long-term secular trends driven by rapid technological innovation and resulting business model changes.
