Deeptech Funding Surges: YourNest Launches Major Continuation Fund
June 17, 2026, 3:32 pm
Location: India, Karnataka, Bengaluru
Employees: 51-200
Founded date: 2015
Total raised: $21.55M
YourNest Venture Capital closes a Rs 400 crore Continuum Fund I. This vehicle fuels top deeptech startups, including Miko and Exponent Energy. HDFC AMC anchors the fund. It provides essential growth capital and offers liquidity to existing investors. This strategic move strengthens India's deeptech ecosystem. It signals a new era for patient capital and innovation within the venture market.
A significant capital infusion targets India’s burgeoning deeptech sector. YourNest Venture Capital recently finalized its Continuum Fund I. The fund secured Rs 400 crore ($48 million). This marks a pivotal development in startup funding.
HDFC AMC Select Fund of Funds I anchors the new vehicle. This partnership underscores institutional confidence. The fund's primary mission is clear. It provides sustained backing for high-performing deeptech companies. These firms already reside within YourNest’s existing portfolio.
The Continuum Fund I is not merely another investment vehicle. It serves a dual purpose. First, it injects critical capital into mature deeptech ventures. These companies have passed initial validation stages. They now require scale capital. Second, it offers vital liquidity options for current limited partners (LPs). This approach addresses a long-standing challenge in venture capital. It provides an exit pathway without forcing premature company sales.
Specific portfolio companies benefit from this renewed commitment. Miko, Dozee, Thriwe, Opkey, Twid, and Exponent Energy are key recipients. These firms represent the cutting edge of deeptech innovation. Each will receive substantial investment. Estimates place individual allocations between Rs 60-90 crore ($7.2-$10.8 million). This enables robust scaling and further technological development.
Deeptech startups inherently demand patient capital. Their development cycles are often longer. They require extensive research and complex commercialization. Traditional fund structures can sometimes pressure early exits. This happens before full value generation. The Continuum Fund I directly counters this pressure. It allows YourNest to maintain its investment for an additional five to seven years. This extended timeline aligns with deeptech's unique demands.
Companies in this fund have already demonstrated significant success. They collectively generated nearly 11-fold returns across earlier YourNest funds. This proven track record justifies continued investment. These firms also hold over 280 patents. This intellectual property is a powerful asset. It attracts strategic investors and potential acquirers.
Globally, continuation vehicles are gaining traction. They represent an evolving strategy in private equity and venture capital. These mechanisms maximize returns. They also offer flexibility. India is slowly embracing this model. YourNest’s Continuum Fund I sets a precedent. It showcases the model's efficacy for the Indian market.
The deeptech ecosystem requires more than just primary capital. A healthy secondary market is crucial. Continuation vehicles create liquidity. They also retain ownership of high-quality assets. This dual benefit strengthens the overall market. It allows investors to support growth without rigid exit timelines.
These companies are not yet private equity assets. They still need active investor guidance. YourNest offers continued "monitoring and handholding." This close involvement supports ongoing scaling efforts. It bridges the gap before pure secondary investors or private equity funds typically step in.
YourNest Venture Capital has a history of backing innovative companies. The firm launched its first fund in 2012. It closed that fund with a corpus of Rs 83.4 crore. That initial fund delivered a Distributed-to-Paid-In (DPI) multiple of 3.3x. This metric signals strong returns for investors.
In 2021, YourNest secured the National Infrastructure and Investment Fund (NIIF) as an anchor investor for its Fund III. This demonstrates consistent institutional backing. It highlights the firm's capacity to attract significant capital. YourNest's portfolio spans diverse sectors. These include artificial intelligence, healthcare technology, enterprise software, mobility, and consumer technology. Its focus remains on disruptive technologies.
The Indian government actively promotes deeptech innovation. Initiatives like the Rs 1 lakh crore Research Development and Innovation scheme provide critical support. Sector-specific reforms further encourage investment. This supportive environment incentivizes fund houses. More capital flows into deeptech startups.
The launch of the Continuum Fund I signals a maturing Indian venture capital market. It provides a blueprint for managing successful portfolios. It offers options for both companies and investors. Deeptech companies gain patient capital for long-term growth. LPs achieve liquidity on their best assets. This dynamic fuels innovation. It positions India as a global deeptech hub. The future of Indian deeptech looks robust. This new fund will play a significant role. It champions cutting-edge technology and sustainable venture growth.
A significant capital infusion targets India’s burgeoning deeptech sector. YourNest Venture Capital recently finalized its Continuum Fund I. The fund secured Rs 400 crore ($48 million). This marks a pivotal development in startup funding.
HDFC AMC Select Fund of Funds I anchors the new vehicle. This partnership underscores institutional confidence. The fund's primary mission is clear. It provides sustained backing for high-performing deeptech companies. These firms already reside within YourNest’s existing portfolio.
Strategic Capital for Innovation
The Continuum Fund I is not merely another investment vehicle. It serves a dual purpose. First, it injects critical capital into mature deeptech ventures. These companies have passed initial validation stages. They now require scale capital. Second, it offers vital liquidity options for current limited partners (LPs). This approach addresses a long-standing challenge in venture capital. It provides an exit pathway without forcing premature company sales.
Specific portfolio companies benefit from this renewed commitment. Miko, Dozee, Thriwe, Opkey, Twid, and Exponent Energy are key recipients. These firms represent the cutting edge of deeptech innovation. Each will receive substantial investment. Estimates place individual allocations between Rs 60-90 crore ($7.2-$10.8 million). This enables robust scaling and further technological development.
Patient Capital for Deeptech Growth
Deeptech startups inherently demand patient capital. Their development cycles are often longer. They require extensive research and complex commercialization. Traditional fund structures can sometimes pressure early exits. This happens before full value generation. The Continuum Fund I directly counters this pressure. It allows YourNest to maintain its investment for an additional five to seven years. This extended timeline aligns with deeptech's unique demands.
Companies in this fund have already demonstrated significant success. They collectively generated nearly 11-fold returns across earlier YourNest funds. This proven track record justifies continued investment. These firms also hold over 280 patents. This intellectual property is a powerful asset. It attracts strategic investors and potential acquirers.
Evolving VC Landscape
Globally, continuation vehicles are gaining traction. They represent an evolving strategy in private equity and venture capital. These mechanisms maximize returns. They also offer flexibility. India is slowly embracing this model. YourNest’s Continuum Fund I sets a precedent. It showcases the model's efficacy for the Indian market.
The deeptech ecosystem requires more than just primary capital. A healthy secondary market is crucial. Continuation vehicles create liquidity. They also retain ownership of high-quality assets. This dual benefit strengthens the overall market. It allows investors to support growth without rigid exit timelines.
These companies are not yet private equity assets. They still need active investor guidance. YourNest offers continued "monitoring and handholding." This close involvement supports ongoing scaling efforts. It bridges the gap before pure secondary investors or private equity funds typically step in.
YourNest's Track Record
YourNest Venture Capital has a history of backing innovative companies. The firm launched its first fund in 2012. It closed that fund with a corpus of Rs 83.4 crore. That initial fund delivered a Distributed-to-Paid-In (DPI) multiple of 3.3x. This metric signals strong returns for investors.
In 2021, YourNest secured the National Infrastructure and Investment Fund (NIIF) as an anchor investor for its Fund III. This demonstrates consistent institutional backing. It highlights the firm's capacity to attract significant capital. YourNest's portfolio spans diverse sectors. These include artificial intelligence, healthcare technology, enterprise software, mobility, and consumer technology. Its focus remains on disruptive technologies.
Government Support and Future Outlook
The Indian government actively promotes deeptech innovation. Initiatives like the Rs 1 lakh crore Research Development and Innovation scheme provide critical support. Sector-specific reforms further encourage investment. This supportive environment incentivizes fund houses. More capital flows into deeptech startups.
The launch of the Continuum Fund I signals a maturing Indian venture capital market. It provides a blueprint for managing successful portfolios. It offers options for both companies and investors. Deeptech companies gain patient capital for long-term growth. LPs achieve liquidity on their best assets. This dynamic fuels innovation. It positions India as a global deeptech hub. The future of Indian deeptech looks robust. This new fund will play a significant role. It champions cutting-edge technology and sustainable venture growth.