-
Bat VC‘s second fund targets $100M for AI, fintech, and enterprise startups across both the US and India markets
-
The firm’s first $8.2M fund achieved 29% IRR with two successful exits
-
Bat VC aims to capitalize on India’s growing tech ecosystem and the strategic importance of US-India startup collaboration
New York-based early-stage venture firm Bat VC is raising $100 million for its second fund to invest in artificial intelligence startups operating across both the US and India, according to a Business Insider India report on Tuesday.
Founded by a team of Indian tech veterans with experience across major tech firms, including Yahoo and Twitter India, Bat VC launched its second vehicle following what it describes as a successful first fund. The firm says its initial $8.2 million fund delivered early returns with two exits and an internal rate of return of 29%.
Don’t Miss:
Fund II will focus on startups operating at the intersection of AI, fintech, and enterprise technology. The firm is reportedly writing checks in the range of $3 million to $5 million and is currently in talks with institutional investors, family offices, and high-net-worth individuals for the first close.
Bat VC is building its strategy around the growing convergence between the US and Indian tech ecosystems. India, home to over 159,000 government-recognized startups and a rapidly growing pool of technical talent, is increasingly seen as a destination for both innovation and production. Meanwhile, the US remains the world’s largest market for enterprise software, making it a natural scale-up destination.
The firm’s model is built on the premise of capital efficiency — building high-value products in India and taking them to global markets through US-based distribution and sales channels. This cross-border approach allows startups to build capital-efficient products in India while leveraging US sales networks and customer relationships. The strategy mirrors successes like Freshworks Inc (NASDAQ:FRSH), which scaled from Chennai to a Nasdaq IPO by targeting global customers early.
Trending: Maker of the $60,000 foldable home has 3 factory buildings, 600+ houses built, and big plans to solve housing — this is your last chance to become an investor for $0.80 per share.
Bat VC’s new fund will prioritise startups applying AI to specific industries such as healthcare, manufacturing, and logistics rather than horizontal platforms. The firm also sees significant potential in the US-India enterprise software market, which it believes could surpass the scale of the US-Israel tech corridor, Business Insider reported.