Funding Alert

Blume Ventures raises $105 million in the first close of its fourth fund

• ByStartupStory     |    November 24, 2021

Blume Ventures said on Wednesday it has raised $105 million in the first close of its fourth fund, less than two years after finalizing its previous fund, as investment activity intensifies in the world’s second largest internet market.

The investor, which has backed edtech firm Unacademy, used car selling platform Spinny, and beauty etailer Purplle, typically comes in during the pre-seed to pre-Series A funding rounds of technology companies and has built a large portfolio over the past decade.

Blume expects to make the final close by the end of the current financial year.

 

The firm’s Fund-III had mopped up $102 million last year along with a $41 million Opportunity Fund to back a select group of companies. In May, ET was the first to report on the firm’s plan to launch a new fund.

“There is no precedent for the current environment. We have to be sensible but not conservative, which is also what we are telling our founders. We are trying to be thoughtful about it,” Reddy said.

He attributed the larger fund size to more money going into early-stage startups, which are needing more money to hire and retain talent, accelerate growth and chase new markets. A larger fund will also allow Blume to double down on its winners and go deeper in further funding rounds. Venture firms often see their returns dwindle compared to peers despite picking the right companies because they hold a lower stake, not having invested beyond one or two rounds.

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