Together Fund, an early-stage venture capital firm specializing in software-as-a-service (SaaS) companies, has successfully completed the first close of its second fund, boasting a substantial corpus of $150 million. The company aims to utilize the proceeds to invest in early-stage SaaS and artificial intelligence (AI) startups. With institutional investors from both the US and Asia already on board, Together Fund is well-positioned to make a significant impact in the tech investment landscape.
In this Article
Pioneering Investors and Focus Areas
Led by the founders of Freshworks and Eka Software, along with a former executive from Matrix Partners, Together Fund has an impressive leadership team that brings a wealth of experience to the table. This new fund follows its maiden fund of $85 million, bolstering the early-stage investment capacity in the country.
In line with its previous investment strategies, the fund will primarily target startups in the domains of SaaS, enterprise software, developer tools, open-source software, cloud-native infrastructure, API-first businesses, and generative AI. It’s evident that Together Fund intends to capitalize on the transformative potential of AI in the current business landscape.
The Paradigm Shift Towards SaaS.AI
The venture capital firm believes that the world is at a pivotal moment in history, characterized by a transformative transition in which businesses are awakening to the power of AI. In the wake of this paradigm shift, Together Fund envisions a future where SaaS evolves into SaaS.AI, where AI becomes an integral part of every startup’s strategy, offering groundbreaking solutions that surpass the status quo.
Recent Investments in Gen AI Businesses
Over the past three months, Together Fund has made notable investments in three Gen AI firms over the past three months that span the healthcare, developer infrastructure, and contemporary marketing stack industries. This strategic move showcases the firm’s commitment to staying at the forefront of cutting-edge technologies and emerging trends in the market.
Founders-First Approach and Entrepreneurial Empowerment
From its inception, Together Fund has been dedicated to a founder-first approach, offering much more than just capital. The firm aims to empower entrepreneurs by providing them with valuable knowledge, networks, and support to excel in the highly competitive product world.
According to Girish Mathrubootham, co-founder of Freshworks and a key figure in Together Fund, the firm’s vision of elevating India’s position in the product landscape is becoming a reality with the collaboration of 20 promising startup teams.
Success Stories from the First Fund
Through its first fund, Together Fund backed several startups, including procurement solution Spendflow, developer tool Insightly, IoT platform Bytebeam, and no-code platform NocoDB. Impressively, six portfolio companies, namely Kula, Privado, RevenueHero, Spendflo, Spry, and Toplyne, have already secured follow-on funding from global investors.
Future Prospects and Investment Strategy
The launch of the second fund underscores the remarkable progress of Together Fund’s existing portfolio and the robustness of India’s technology ecosystem, despite challenging funding and macroeconomic conditions. The company is steadfast in its commitment to focus on seed and Series A investments, with cheque sizes ranging from $1 million to $5 million, enabling it to nurture and support promising startups.
Summary
Together Fund has announced the successful first close of its second fund, with a substantial corpus of $150 million. The company is determined to utilize this fund for early-stage investments in SaaS and AI startups, capitalizing on the transformative power of AI in the current business landscape. With a founder-first approach and a commitment to empowering entrepreneurs beyond financial backing, Together Fund is poised to make a significant impact in India’s tech ecosystem.
Frequently Asked Questions
What is Together Fund’s primary focus?
Together Fund primarily focuses on investing in early-stage software-as-a-service (SaaS) companies and artificial intelligence (AI) startups
Who leads Together Fund?
Together Fund is led by the founders of Freshworks and Eka Software, along with a former executive from Matrix Partners.
What areas will Together Fund invest in?
Together Fund will invest in areas such as SaaS, enterprise software, developer tools, open-source software, cloud-native infrastructure, API-first businesses, and generative AI.
How does Together Fund support entrepreneurs?
Beyond providing capital, Together Fund adopts a founder-first approach, offering entrepreneurs valuable knowledge, networks, and support to excel in the product world.
Which startups did Together Fund back in its first fund?
In its first fund, Together Fund backed startups like Spendflow, Insightly, Bytebeam, and NocoDB, among others