**Japanese VC Firm BeyondNext Ventures to Raise $50 Million for Indian Startups**
Japanese venture capital firm BeyondNext Ventures is set to raise a $50 million fund aimed at supporting deeptech and deep science startups in India. This strategic move, as outlined by a senior executive, is driven by three key objectives: investing in companies with a robust go-to-market strategy, supporting Indian entrepreneurs globally, and facilitating the entry of these businesses into the Japanese market, where they can partner with larger conglomerates for distribution.
Jay Krishnan, head of India investments at BeyondNext Ventures, emphasized the potential of the Indian startup ecosystem, stating, “We think of India as a place where there are enormous tailwinds and tonnes of young entrepreneurs. We want to enable those tailwinds, both from a policy and risk conversion side, and bring them to Japan.” BeyondNext made its initial foray into India in 2019, backing 14 startups with capital from its $100 million second fund. Krishnan noted, “Back then, the idea was to get a taste, get some exposure. Now, we’ve decided to go full hog in India.”
The interest from Japanese venture capitalists in the Indian startup landscape is growing. For instance, clean energy startup Aerem secured approximately $12 million from Sumitomo Mitsui Banking Corporation earlier this year. Additionally, Sumitomo’s Asia fund participated in a $35 million funding round for mortgage-tech startup Easy last November. In July of the previous year, mobility manufacturer Suzuki launched a ₹340 crore fund focused on Indian startups in agriculture, financial inclusion, supply chain, and mobility.
Currently, BeyondNext is in the process of fundraising, with plans to allocate 50% of the new fund for 20 to 25 investments within the first five years. The remaining capital will be reserved for successful ventures from the India portfolio, with $1 million earmarked for pre-Series A investments and another $1 million for follow-on funding. The firm aims to engage with companies at the pre-seed stage, offering investment amounts ranging from $250,000 to $2 million. Krishnan stated, “We don’t want to do Series A for these startups – we’d rather make them discoverable and visible to investors who come in at that stage.”
BeyondNext is particularly optimistic about the semiconductor industry, focusing on startups that can disrupt the value chain in this sector. The firm is also exploring opportunities in biotech, space, and artificial intelligence. “We’re also eager about anything that has a local/contextualized play where the market is big enough that once they crack India, they can go anywhere,” Krishnan added.
To support its initiatives, BeyondNext operates an incubation program called BRAVE, which connects scientists and researchers with business talent to transform innovative ideas into startups. This program has successfully launched 52 ventures to date. Krishnan highlighted the firm’s preference for teams with two or three founders, where the strengths of one can compensate for the weaknesses of another.
In conclusion, BeyondNext Ventures is poised to make a significant impact on the Indian startup ecosystem, leveraging its expertise in deeptech to foster innovation and growth. As the firm continues to expand its presence in India, it aims to bridge the gap between Indian startups and the Japanese market, creating new opportunities for collaboration and success.
**FAQ**
**What is BeyondNext Ventures’ focus in India?**
BeyondNext Ventures focuses on investing in deeptech and deep science startups in India, aiming to support young entrepreneurs and facilitate their entry into the Japanese market.
