Cornerstone Ventures Launches $200 Million Second Fund to Support Emerging B2B Tech Startups

• ByStartupStory     |    April 10, 2024

Cornerstone Ventures, a prominent B2B enterprise technology venture capital firm, has announced the launch of its second fund, aiming to raise $200 million, including a green-shoe option. The firm, renowned for its strategic investments in the B2B tech sector, revealed that the new fund will focus on nurturing emerging startups across various industries, including financial services & insurance, retail, consumer goods & e-commerce, distribution & supply chain, healthcare products & services, and sector-agnostic core technology innovations.

Abhishek Prasad, Managing Partner at Cornerstone Ventures, expressed the firm’s commitment to supporting the next generation of enterprise technologies. He stated, “The second fund builds on the success of Fund-I and underscores our commitment to supporting emerging B2B enterprise tech opportunities. We aim to back some of the largest value creators in this space of ‘Next Generation Enterprise Technologies’, whether building in India for the world or building exclusively for the domestic market.”

With a focus on early growth stages, the new fund aims to facilitate access to a broad enterprise customer ecosystem, strategic funding from next-round investors, and a vast network of mentors and go-to-market partners. The ticket size for investments will range from $5 million to $15 million, catering to startups poised for significant expansion.

Cornerstone Ventures’ first fund, launched in mid-2019 with a size of approximately $50 million, has seen considerable success. Anchored by the Government of India’s DPIIT Fund of Funds (managed by SIDBI) and Self-Reliant India Fund managed by State Bank of India (SBI), the fund has been deployed across 21 portfolio companies, primarily focusing on B2B enterprise SaaS business models.

The firm highlighted that the first fund has contributed significantly to the growth of its portfolio companies, with an additional $1-2 million in ARR (annual recurring revenue) facilitated and achieving over 4X growth in cumulative revenue base within just four years of investing. Moreover, the fund has played a pivotal role in creating over 1,000 direct jobs and over 15,000 indirect jobs.

Cornerstone Ventures is currently in the process of onboarding several large institutional investors for Fund-II, alongside engaging with marquee investors, founders, and business leaders to provide mentorship and strategic guidance to entrepreneurs.

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