Mumbai, Apr 10 (KNN) Cornerstone Ventures, a Mumbai-based venture capital firm focused on business-to-business (B2B) enterprise technology investments, announced the launch of its second fund on Tuesday.

The new fund has a target size of USD 200 million, with an additional USD 50 million green-shoe option.

The fund will have a 12-year lifecycle and plans to make investments ranging from USD 5 million to USD 15 million in a mix of early and growth-stage startups. Cornerstone expects to back 15 to 20 companies from this latest vehicle.

According to Abhishek Prasad, Managing Partner at Cornerstone Ventures, the firm is particularly interested in innovations that drive core business processes, engage multiple stakeholders across the value chain, build multiple revenue streams, and demonstrate profitability at the account level.

"Such businesses do not require capital for sustenance but really to drive growth," Prasad said in a statement.

Sectors of focus for Fund II include financial services, insurance, retail, consumer goods, e-commerce, distribution, supply chain, healthcare products, and healthcare services.

This follows Cornerstone's first USD 50 million fund launched in 2019, which was deployed across 21 portfolio companies primarily focused on B2B enterprise software-as-a-service models. Notable investments from that fund included Credilio, THB, Blubirch, and Dhiway.

Cornerstone said it facilitated USD 1 million to USD 2 million in additional annual recurring revenue for each of its first fund's portfolio firms. That fund achieved over 4x growth in cumulative portfolio revenue in about four years.

Anchors for Cornerstone's inaugural fund included the government's Fund of Funds operated by SIDBI and the State Bank of India's Self-Reliant India Fund. The firm is now onboarding institutional investors for Fund II as well.

Cornerstone Ventures was founded by former Reliance Industries executives Prasad and Rajiv Vaishnav, who previously led investments and ecosystem partnerships at the corporate venture arm GenNext Ventures.

(KNN Bureau)