[Exclusive Interview] This Early-Stage VC Firm Invests In Sustainable Ideas That Impacts People & This Planet

Recently, we interacted with Mr. Shubham Jhuria, CFO & Partner at Aeravti Ventures, a Venture Capital firm backing changemakers that elevate industry, evolve consciously, and push the boundaries consistently.

Here are the interview highlights:

Q1: Please provide an overview of Aeravti Ventures, including its mission, focus areas, and investment philosophy.
A1: Aeravti Ventures is an early-stage focused fund backing founders building businesses at the back of patentable innovation. We are investing from Pre-Seed to Pre-Series A in the following sectors: Biosciences, DeepTech, AgriTech, EnterpriseTech, and Climate.
Our venture capital fund’s philosophy is deeply rooted in four core principles:
1) Innovation Leadership: We believe in supporting and nurturing pioneering technology startups that are at the forefront of innovation. Our goal is to identify companies that are not only developing groundbreaking technologies but also have the potential to disrupt traditional industries and create substantial value.
2) Focus on People: We invest in technical founders who possess exceptional competence in their field and are building significant Intellectual Property that can be Leveraged to build Cutting-edge Technology.
3) Impact-Driven Investment: We are committed to making investments that not only generate financial returns but also have a positive impact on society and the environment. We seek out startups that align with our mission of advancing sustainability and global well-being.
4) Long-Term Partnership: We view our investments as long-term partnerships rather than mere financial transactions. We provide not only capital but also strategic guidance, industry expertise, and access to our extensive network to help our portfolio companies succeed and scale.

Q2: Entrepreneur Partners and their role in the fund?

A2: We have 30+ Entrepreneur Partners in the fund strategically positioned across the globe with a notable presence in key regions such as India, Southeast Asia, and the United States. These Entrepreneur Partners bring a wealth of experience and expertise to our investment ecosystem, each of them having a remarkable track record as founders of thriving startups, companies with successful exits, and even publicly listed entities, spanning various sectors and domains.By leveraging the collective power of these Entrepreneur Partners, our portfolio companies gain a competitive edge. They can accelerate their expansion, tap into new markets, and, importantly, learn from the past experiences and insights of successful entrepreneurs.

Q3: Story behind the inception of Aeravti Ventures and how do the founders of the fund know each other?

A3: The idea for Aeravti Ventures started as a teenage vision of my co-founder, Rishabh Singh. We both got our industry grounding by working in Incubators, Professional firms, and large-scale startups whilst investing in early-stage ventures across USA and India. Rishabh and I spent 14 years together in the same school in Bangalore and stayed in close touch during his stint in USA. Upon his return, we started an Investment Banking and Financial Advisory firm and operated that for 4 years before starting the fund in 2022.

Q4: What unique value does your venture capital firm bring to startups and entrepreneurs compared to other firms in the industry?

A4: Aeravti Ventures distinguishes itself by prioritizing sustainable growth over impractical exponential rises. We offer hands-on support directly from our Fund Partners, acting as an extension of the portfolio’s team. Leveraging our network and Entrepreneur Partners, we foster sustainable growth and provide tailored assistance for long-term success.

Q5: What specific qualities do you look for in potential investment opportunities? What key factors are important in your decision-making process?
A5:At Aeravti Ventures, our focus on early-stage investments places a premium on the founders and their ability to drive sustainable growth. We carefully evaluate their alignment with our goals and assess their capacity to scale the organization effectively.
We target startups that not only fall within our sector of interest but also exhibit the potential to address global challenges. Our decision-making process considers key factors such as market growth, the significance of the problem they aim to solve, product-market viability, the potential for intellectual property development, etc.

Q6: In a rapidly evolving startup landscape, how do you stay ahead and identify emerging trends and industries with high growth potential?
A6: We proactively identify sectors poised for relevance 8-10 years into the future, often overlooked by mainstream discourse. To achieve this, we cultivate a strong network encompassing startup founders, Entrepreneur Partners, Incubators, Accelerators, and VC Funds. This network keeps us attuned to emerging trends, technologies, and industries. Additionally, data-driven insights and thorough market research inform our investment decisions, ensuring our focus aligns with high-growth potential areas. It is very important to keep your ears close to the ground to identify innovation at the grassroot.

Q7: Please share some of your successful investments and how your firm contributed to their growth and success.
A7: Not calling any investment as successful yet but the fund has invested in 2 companies, one in Logistics SaaS and the other in AgriTech. Our contributions have been multifaceted—including strategic advice, partnership introductions, client introductions and operational guidance.

Q8: What is the current state of the VC industry and its growth trajectory in recent years?
A8: The Indian VC landscape is on the rise, making up 3% of the global VC industry. It’s in a rapid expansion phase, characterized by a substantial amount of available capital (“dry powder”) and a multitude of new and established funds introducing new schemes in 2022 and 2023. This surge of innovation, supported by the available capital, sets the stage for an exciting couple of years ahead, with the growth trajectory of the industry poised to be determined by the innovations backed during this period.

Q9: How do regulations and compliance factors impact businesses in the industry, and how do VCs navigate these challenges?
A9: Regulatory landscapes are always a concern in the startup ecosystem for investors and founders alike. We have a dedicated compliance & legal team to ensure that we are compliant with all regulations and changes that may come our way. We also recommend our portfolio companies to build a strong legal counsel along the way to safeguard them from future regulatory changes.

Q10: As technology continues to advance, how do you see the future of venture capital evolving? Are there any trends or shifts you foresee?
A10: Technology often plays the role of a disruptor or an enabler. As technology evolves, venture capital will continue to support disruptive innovations. A notable shift is the emergence of technology as an enabler within the VC industry. Funds are embracing comprehensive platforms for managing their entire fund life cycle. Additionally, trends like Generative AI are gaining attention and capital, though their ultimate impact on VC returns remains to be seen. The future of venture capital is likely to be shaped by the dynamic interplay between disruptive technologies and innovative tools within the industry itself.

Q11: Anything else that you would like to share?
A11: What truly excites us at Aeravti Ventures is the privilege of collaborating with some of the brightest minds in the country. These individuals possess the power to not only disrupt industries but also drive transformative change in the ecosystem& environment. We have unwavering faith in the evolving narrative of India and are humbled to play a small role in this rapidly developing and promising ecosystem.