US-based venture capital firm Golden Sparrow Ventures has announced the first close of its second fund, a $20 million vehicle dedicated to Indian deep tech and enterprise AI startups. The fund has already secured over half of its target capital, bolstered by strong participation from over 60% of its existing limited partners. This move signals continued confidence in the firm's strategy and the burgeoning Indian technology ecosystem.
Strategic Focus and Investment Thesis
Fund II will target approximately 22 companies at the pre-seed and seed stages, with an average initial investment of $650,000. The capital will be evenly allocated between deep technology ventures and enterprise AI platforms, reflecting a balanced approach to innovation. Furthermore, the firm has reserved about 12% of the corpus for follow-on investments in its most promising portfolio companies showing strong early traction.
Golden Sparrow has already deployed capital from the new fund, making its inaugural investment in an enterprise data platform founded by a repeat entrepreneur. The US-structured fund, which is administered through AngelList, is targeting ambitious 5x gross returns over a ten-year period. This structure provides a streamlined vehicle for limited partners to access the high-growth Indian market.
Building on a Successful Track Record
The new fund builds upon the success of Golden Sparrow's inaugural $8 million fund, which was fully deployed between 2023 and 2025. This first vehicle invested in 18 companies and has delivered top-decile performance for its vintage. Portfolio companies have successfully raised subsequent funding from prominent investors including Accel, TDK Ventures, and Prosus.
Notable successes from Fund I include space-tech startup EtherealX, which recently secured a Series A round at an $80.5 million valuation. Another portfolio company, semiconductor firm Morphing Machines, also raised its Series A in late 2025 to advance its chip development. These achievements underscore the firm's ability to identify and nurture category-defining deep tech companies from their earliest stages.
Navigating India's Evolving Deep Tech Landscape
Founder Rishaad Currimjee noted the significant expansion of deep tech investing in India, which has grown from just 1% to 15% of total annual venture capital funding. He emphasized the firm's early conviction, stating that Golden Sparrow made contrarian bets before the sector became crowded. This positions the firm as a seasoned and knowledgeable partner for founders in the space.
The firm's focus aligns with a broader market shift, as investors increasingly launch dedicated funds for longer-duration deep tech bets. This trend is further supported by the Indian government's proactive stance, including a new INR 1 Lakh Cr research and innovation scheme. This confluence of private and public capital is creating a robust ecosystem for technological advancement.
Strengthening the Team for Future Growth
To support its expansion, Golden Sparrow has appointed Ritik Singh as Principal to lead its Bengaluru office and spearhead investments across the US-India corridor. The firm is also supported by a team of distinguished partners, including former Amazon CTO Michael Marmor and ex-PwC Global AI Lead Anand Rao. This combination of on-the-ground presence and global expertise enhances its value proposition for founders.
Golden Sparrow Ventures' $20 million Fund II marks a significant step in its mission to back transformative Indian technology companies. With a clear investment strategy, a proven track record, and a strengthened team, the firm is well-equipped to navigate the competitive landscape. This new capital injection will undoubtedly fuel the next wave of innovation in India's rapidly growing deep tech and AI sectors.