gradCapital launches $6 million fund to back student-founded startups

Bengaluru-based venture capital firm gradCapital has announced the launch of its second fund, with a total value of $6 million, to invest in startups founded by students. The VC fund has outlined its investment terms, offering a standard investment of $40,000 in exchange for 4 per cent equity in student-run companies.

gradCapital's CEO, Abhishek Sethi, emphasised the fund's mission to empower students and encourage ambition despite the challenges posed by the education system. The fund aims to support students who are more inclined to start direct-to-consumer (D2C) companies rather than pursuing complex technological endeavours like quantum computing.

 "We are not in the business of finding and investing in deals, we are in the business of letting students be more ambitious and build a future, despite having a challenging education system. Students are more likely to start a D2C company instead of a quantum computer, and we need more of the latter," he said.

Entrepreneurial networking

Selected entrepreneurs will have the opportunity to participate in a four-week cohort program in Bengaluru, which will include interactions with industry figures such as Tarun Mehta (co-founder of Ather Energy), Shashank Kumar (co-founder of Razorpay), and Kailash Nadh (CTO of Zerodha).

CIIE.CO backs the fund, and the cohort program boasts notable individuals like Ankur Warikoo (co-founder of Nearbuy), Sanjeev Bikhchandani (founder and Executive Vice President of Info Edge), and Kailash Nadh (CTO of Zerodha) among its supporters.

gradCapital, established in 2021 by two IIM Ahmedabad alumni, initially provided support to five startup teams to help them secure spots in YC and Zepto. The fund initially raised $1 million for investment in 18 companies and has since grown to double its initial value within 18 months.