Transition VC, a Bengaluru-based venture capital (VC) firm, has initiated its inaugural fund with a total value of INR 400 crore (approximately $49 million), with an option for an additional INR 200 crore ($24.5 million). This fund is dedicated to supporting startups operating in the clean technology sectors, including mobility, green hydrogen, energy storage, net-zero solutions, and climate technology.

Transition VC’s Plans

Over the next three years, Transition VC intends to deploy its first fund to provide financial backing ranging from half a million dollars to one million dollars to up to forty early-stage startups. The venture capital firm, based in Bengaluru, aims to invest in early-stage companies across various sectors, with a particular focus on climate technology, electric transportation, green hydrogen, energy storage, and net-zero initiatives in building infrastructure.

The firm has announced that the fund’s corpus will be invested gradually over the next three years, with investment ticket sizes ranging from $500,000 to $1 million. Approximately 25 percent of the fund’s total value will be allocated to global startups. Additionally, Transition VC has established collaborations with incubators, accelerators, other venture capital firms, and corporate entities in the clean energy sector to jointly conduct pilot projects and assist startups in scaling their operations.

SEBI Approvals

Transition VC recently received approval from the Securities and Exchange Board of India (SEBI), the regulatory body overseeing India’s capital markets. The fund is expected to have its first close by the end of the calendar year 2022.

Transition VC’s team, comprising Raiyaan Shingati, Mohammed Shoeb Ali, Mustafa Wajid, Naresh V Narasimhan, Tejas Goenka, Saif Qureishi, and Rajesh Doshi, collaborated in 2021 to establish the firm. Shingati and Ali oversee the fund’s operations. Before forming Transition VC, the team had previously invested in several early-stage companies within the electric mobility sector, including Charge+Zone and Exponent Energy, which focus on electric vehicle charging infrastructure.

A Focus on Climate and Renewable Energy

Transition VC recognizes the business opportunities presented by climate change and the transition to renewable energy. The firm believes that these processes necessitate a reimagining of various aspects of the economy and represent the beginning of a transformative era. Transition VC emphasizes the profound impact that these shifts will have on energy consumption patterns over the coming decades.

According to the venture capital firm, its inaugural fund has garnered significant interest from high-net-worth individuals (HNIs) in India and globally, family offices, and strategic investment-focused corporations. Transition VC seeks limited partners (LPs) from a select group of investors who possess substantial expertise in the clean technology domain and align with the fund’s mission.

“We aim to bring together the most talented engineers, innovators, and like-minded partners who can contribute to building a brighter future for all,” stated Mustafa Wajid, General Partner at Transition VC.

Transition VC’s commitment to supporting early-stage clean technology startups reflects the growing importance of sustainable and environmentally conscious solutions in addressing global challenges.

Frequently Asked Questions (FAQs)

Q1: What is Transition VC’s focus with its inaugural fund? A1: Transition VC’s inaugural fund, valued at INR 400 crore with an option for an additional INR 200 crore, is dedicated to supporting startups in the clean technology sector. The fund targets startups operating in areas such as mobility, green hydrogen, energy storage, net-zero solutions, and climate technology.

Q2: How will Transition VC deploy its fund? A2: Over the next three years, Transition VC plans to provide financial assistance to up to forty early-stage startups, with investment ticket sizes ranging from $500,000 to $1 million. Approximately 25 percent of the fund’s total value is allocated to global startups.

Q3: What sectors will Transition VC invest in? A3: Transition VC intends to invest in early-stage companies across various sectors, including climate technology, electric transportation, green hydrogen, energy storage, and net-zero initiatives in building infrastructure.

Q4: What approvals has Transition VC received recently? A4: Transition VC has received approval from the Securities and Exchange Board of India (SEBI), allowing it to proceed with its fund activities.

Q5: How does Transition VC plan to collaborate with other entities in the clean energy sector? A5: Transition VC has established collaborations with incubators, accelerators, other venture capital firms, and corporate entities in the clean energy sector. These partnerships involve jointly conducting pilot projects and supporting startups in scaling their operations.

Q6: What is Transition VC’s overarching mission? A6: Transition VC’s mission is to bring together talented engineers, innovators, and partners who share a commitment to building a brighter future through sustainable and environmentally conscious solutions.

Transition VC’s launch of a dedicated fund for clean technology startups underscores the increasing importance of sustainable innovations in addressing global environmental challenges and advancing clean energy solutions.