AudTen Ventures has officially announced the launch of its debut fund, a sub-$5.52 million vehicle designed to reshape India's early-stage investment landscape. Founded by Sanjay G Kothari, the firm will back AI-led and technology-enabled startups at the angel and pre-seed stages. The fund seeks to bridge a critical gap between early capital availability and structured venture support, offering a more disciplined and efficient pathway for emerging companies.
A New Approach to Early-Stage Funding
Founder Sanjay G Kothari noted that founders often face significant friction when raising initial capital, contending with fragmented investors and protracted decision cycles that can take months. AudTen Ventures aims to solve this by introducing a "friction removal capital" strategy, bringing venture-style speed and discipline to the pre-seed stage. The firm is streamlining its process to move from an initial pitch to a formal investment agreement within an ambitious three-week timeframe.
Strategic Investment Focus on Vertical AI
The fund’s investment thesis is sharply focused on vertical AI and enterprise applications where technology can drive measurable productivity gains in sectors like fintech, healthcare, and manufacturing. Kothari believes that while large language models provide foundational infrastructure, sustainable value will be created by companies solving deep workflow problems within specific industries. This strategy is intended to avoid the commoditization risk that affects startups merely acting as wrappers for evolving core AI models.
High-Conviction Model and Hands-On Support
AudTen Ventures will adopt a high-conviction, low-frequency investment model, deliberately steering clear of a broad spray-and-pray approach common at this stage. The firm plans to invest between $60,700 and $182,100 in a concentrated portfolio of 18 to 21 startups. This focused strategy allows for deep, hands-on collaboration with founders on financial discipline, go-to-market execution, and preparation for future fundraising rounds.
The Role of Active LPs and the Nano VC Model
A key component of AudTen's value proposition is its active Limited Partner base, which primarily consists of CXOs and seasoned industry operators. These LPs are expected to contribute far more than just capital, offering hands-on advisory, critical domain expertise, and valuable access to customer networks. This operational support is designed to be particularly impactful as portfolio companies begin to scale their operations and explore international market expansion.
The firm is positioning itself as a nano VC, an emerging category characterized by smaller fund sizes and tightly defined investment theses. This model has gained traction globally for its ability to provide highly focused support to startups navigating the critical zero-to-one phase of their journey. AudTen's B2B focus is also shaped by its fund size, enabling it to create more impact with enterprise-focused companies aiming for global scale.
With regulatory approvals secured and its first close imminent, AudTen Ventures is poised to begin deploying capital and partnering with founders in the coming months. The nine-year fund structure, which includes reserved capital for follow-on investments in high-performing companies, signals a long-term commitment to its portfolio. By combining swift, structured capital with deep operational support, the firm aims to become a pivotal partner for the next generation of AI-driven startups in India.
Source: b2b.economictimes.indiatimes