## KEY TAKEAWAYS
- YourNest Venture Capital has closed a Rs 400 crore continuation fund (YourNest Continuum Fund I), anchored by HDFC AMC Select Fund of Funds I, to invest in seven portfolio companies that have already de-risked their technology, team, and market validation phases.
- The fund will deploy Rs 60–90 crore across portfolio companies including Miko, Dozee, Exponent Energy, Twid, Opkey, and Thriwe—deeptech startups spanning AI, healthcare technology, enterprise software, mobility, and consumer technology sectors.
- Continuation vehicles address a critical gap in India's venture ecosystem by providing liquidity and capital for scaling-stage companies that have outgrown early-stage funding but are not yet positioned for traditional private equity investment.
- Managing Director Sunil Goyal emphasized that continuation funds allow limited partners to back proven, de-risked assets while avoiding the extended 12–15 year venture fund cycle, reflecting growing LP demand for compressed timelines on quality assets.
- The model signals a structural maturation in India's deeptech ecosystem, as founded companies require "monitoring and handholding" from investors with operational history rather than pure secondary or financial buyers at this stage.
## DETAILED SUMMARY
YourNest Venture Capital, a deeptech-focused venture capital firm founded in 2011, has successfully closed a Rs 400 crore continuation fund—YourNest Continuum Fund I—anchored by HDFC AMC Select Fund of Funds I. The continuation vehicle will deploy approximately Rs 60–90 crore across a portfolio of seven high-performing companies: Miko, Dozee, Exponent Energy, Twid, Opkey, and Thriwe.
The fund targets companies that have already navigated early-stage risks in technology development, team formation, and market validation. According to Sunil Goyal, managing Director of YourNest Venture Capital, these assets have reached a scaling inflection point where capital infusion is the primary requirement rather than continued operational development. Critically, Goyal noted that these companies remain unsuitable for traditional private equity or secondary investors, as they continue to require deep operational support and investor mentorship that only long-standing venture partners can provide.
The continuation fund structure addresses a structural gap in India's venture ecosystem. While continuation vehicles have become standard practice globally among private equity and venture investors seeking to maximize returns and extend value creation, the model is still gaining traction in India. Goyal underscored that deeptech ecosystem development requires both primary venture capital and a functioning secondary market; continuation funds serve as an effective mechanism for generating liquidity while maintaining ownership stakes in quality assets and avoiding the traditional 12–15 year venture fund cycle.
The Rs 400 crore deployment reflects LP appetite for de-risked, proven portfolio companies with shortened investment horizons compared to traditional venture structures. This capital injection will enable the portfolio companies—primarily operating in AI, healthcare technology, enterprise software, mobility, and consumer technology—to scale operations, extend runways, and potentially reach later-stage financing milestones or strategic exits without requiring founder dilution through additional primary fund commitments.
