Key Takeaways
- • Cornerstone Ventures, a Mumbai-based venture capital firm, is targeting the second half of 2027 to launch its third fund, potentially raising up to $250 million, according to Mint.
- • Fund III would be about $50 million larger than Fund II ($150 million with a $50 million greenshoe), and the firm plans to limit the portfolio to no more than 20 startups.
- • The firm is increasing focus on deeptech and AI, including AI-enabled services vertical solutions, while retaining its B2B focus.
- • Fund I ($50 million) is entering its exit phase: three of 21 companies exited, two more in final stages, and managing partner Abhishek Prasad expects DPI to reach about 80%, with exit multiples of roughly 2.7-3.3x.
- • Fund II is expected to be settled at $170-200 million after the firm exercises its greenshoe, with half the portfolio built from eight investments.
Summary
Cornerstone Ventures, the India-focused venture capital firm headquartered in Mumbai, is targeting the second half of 2027 to launch its third fund, potentially raising up to $250 million, according to an interview with managing partner Abhishek Prasad published by Mint. The move reflects a broader trend among Indian VC firms toward larger vehicles capable of writing bigger cheques into portfolio companies.
The firm is considering a Fund III roughly $50 million larger than Fund II, with $250 million as the upper limit. Cornerstone expects to cap the portfolio at no more than 20 startups to maintain close involvement with its companies. Prasad emphasized that larger funds are not automatically better: "The more money, the harder it is to multiply," referring to generating returns for limited partners.
Deeptech has historically been a smaller share of the firm's investments: six of 21 companies in the $50 million Fund I and roughly 10-15% of the $150 million Fund II. Cornerstone did not specify how much it will increase deeptech exposure in Fund III, but said it will retain its traditional B2B focus while pursuing higher-risk, potentially transformative technologies, including space and advanced manufacturing. The firm is also exploring AI startups building verticalised solutions for the services sector, an area several VC funds, including Bessemer Venture Partners, Peak XV Partners, Stellaris Venture Partners, Accel and Elevation Capital, have also targeted.
Fund II, announced in 2024 at $150 million with a $50 million greenshoe, is expected to settle at $170-200 million after the firm decided to exercise the greenshoe, depending on fundraising over the coming months. Prasad said the fund will likely wrap up by the end of 2026 or a few months into 2027, and that the firm will wait for results from Fund II before finalizing Fund III. Fund II has eight investments so far, including repeat bets from Fund I and larger cheques reflecting a growth-stage strategy. Notable Fund II holdings include Yotta, the AI data centre company backed by the Hiranandani group, and OfBusiness, both of which are expected to list publicly.
Fund I, sized at $50 million, is in its exit phase. Of its 21 companies, six are deeptech bets that continue to scale, and the other 15 are traditional SaaS-style investments. Three exits have been completed, including CreditNirvana (acquired by Perfios), Wigzo (acquired by Shiprocket in 2022) and Intelligence Node (acquired by Interpublic Group in 2024), with two more in final stages. Prasad said the five exits would lift DPI to about 80%, with average multiples of 2.7-3.3x. Of the remaining 10 companies, Cornerstone expects at least three to go public within three years, with others expected to see private-equity-style roll-ups or strategic sales.
The firm is considering a Fund III roughly $50 million larger than Fund II, with $250 million as the upper limit. Cornerstone expects to cap the portfolio at no more than 20 startups to maintain close involvement with its companies. Prasad emphasized that larger funds are not automatically better: "The more money, the harder it is to multiply," referring to generating returns for limited partners.
Deeptech has historically been a smaller share of the firm's investments: six of 21 companies in the $50 million Fund I and roughly 10-15% of the $150 million Fund II. Cornerstone did not specify how much it will increase deeptech exposure in Fund III, but said it will retain its traditional B2B focus while pursuing higher-risk, potentially transformative technologies, including space and advanced manufacturing. The firm is also exploring AI startups building verticalised solutions for the services sector, an area several VC funds, including Bessemer Venture Partners, Peak XV Partners, Stellaris Venture Partners, Accel and Elevation Capital, have also targeted.
Fund II, announced in 2024 at $150 million with a $50 million greenshoe, is expected to settle at $170-200 million after the firm decided to exercise the greenshoe, depending on fundraising over the coming months. Prasad said the fund will likely wrap up by the end of 2026 or a few months into 2027, and that the firm will wait for results from Fund II before finalizing Fund III. Fund II has eight investments so far, including repeat bets from Fund I and larger cheques reflecting a growth-stage strategy. Notable Fund II holdings include Yotta, the AI data centre company backed by the Hiranandani group, and OfBusiness, both of which are expected to list publicly.
Fund I, sized at $50 million, is in its exit phase. Of its 21 companies, six are deeptech bets that continue to scale, and the other 15 are traditional SaaS-style investments. Three exits have been completed, including CreditNirvana (acquired by Perfios), Wigzo (acquired by Shiprocket in 2022) and Intelligence Node (acquired by Interpublic Group in 2024), with two more in final stages. Prasad said the five exits would lift DPI to about 80%, with average multiples of 2.7-3.3x. Of the remaining 10 companies, Cornerstone expects at least three to go public within three years, with others expected to see private-equity-style roll-ups or strategic sales.
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