Key Takeaways
- • Grant Thornton Bharat and the Indian Venture and Alternate Capital Association (IVCA) released the Emerging Managers Report 2026, a study of first- and second-time venture fund managers in India.
- • Domestic venture fundraising doubled to $5.4 billion in 2025, while seed funding fell 37% in the first nine months of 2026, making selectivity more important for emerging managers.
- • The report urges a research-led investment thesis, fund sizes matched to realistic exit outcomes, disciplined follow-on reserves, and early planning for strategic sales, secondaries and IPOs.
- • The report calls for a dedicated first-time manager pathway within the Rs 10,000 crore Startup India Fund of Funds 2.0.
Summary
Grant Thornton Bharat (GTBharat), in collaboration with the Indian Venture and Alternate Capital Association (IVCA), has released the Emerging Managers Report 2026: From first fund to lasting franchise, a study of first- and second-time venture fund managers in India. According to the report, emerging managers have a significant opportunity as the market becomes more selective.
The report cites several market data points. India's recognised startup base crossed 250,000 in October 2026, with more than half located beyond the metros. Domestic venture fundraising doubled to $5.4 billion in 2025, but seed funding declined 37% in the first nine months of 2026. The report argues that emerging managers with focused strategies and specialist knowledge will be central to identifying and backing the next generation of Indian companies.
Looking ahead to 2030, the report identifies priorities for emerging managers seeking better exits and stronger LP returns. These include a clear, research-led investment thesis, fund sizes matched to realistic exit outcomes, and disciplined reserves for follow-on rounds. It also recommends active support for portfolio companies as they scale and early planning for strategic sales, secondaries and IPOs. The report calls for a stronger support system, including a dedicated pathway for first-time managers within the Rs 10,000 crore Startup India Fund of Funds 2.0.
Amarjeet Makhija, Partner at Grant Thornton Bharat, said emerging managers building their thesis on rigorous research and independent conviction may face a tougher first fundraise but a better chance of long-term success. He advised managers to demonstrate a clear investment strategy, differentiated sourcing and a pipeline of companies that fit the thesis before approaching LPs.
Anisha Singh, Founder & Managing Partner of She Capital and Co-Chair of the IVCA Emerging Managers Council, said the strength of emerging managers will be measured by their ability to build sustainable investment businesses, not only to raise capital. She said the priority is to strengthen access to institutional capital, create more predictable pathways to liquidity and enable credible managers to scale beyond their first fund.
The report cites several market data points. India's recognised startup base crossed 250,000 in October 2026, with more than half located beyond the metros. Domestic venture fundraising doubled to $5.4 billion in 2025, but seed funding declined 37% in the first nine months of 2026. The report argues that emerging managers with focused strategies and specialist knowledge will be central to identifying and backing the next generation of Indian companies.
Looking ahead to 2030, the report identifies priorities for emerging managers seeking better exits and stronger LP returns. These include a clear, research-led investment thesis, fund sizes matched to realistic exit outcomes, and disciplined reserves for follow-on rounds. It also recommends active support for portfolio companies as they scale and early planning for strategic sales, secondaries and IPOs. The report calls for a stronger support system, including a dedicated pathway for first-time managers within the Rs 10,000 crore Startup India Fund of Funds 2.0.
Amarjeet Makhija, Partner at Grant Thornton Bharat, said emerging managers building their thesis on rigorous research and independent conviction may face a tougher first fundraise but a better chance of long-term success. He advised managers to demonstrate a clear investment strategy, differentiated sourcing and a pipeline of companies that fit the thesis before approaching LPs.
Anisha Singh, Founder & Managing Partner of She Capital and Co-Chair of the IVCA Emerging Managers Council, said the strength of emerging managers will be measured by their ability to build sustainable investment businesses, not only to raise capital. She said the priority is to strengthen access to institutional capital, create more predictable pathways to liquidity and enable credible managers to scale beyond their first fund.
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