Bat VC Launches $100 Million Fund to Support Early-Stage AI Startups in US and India

Bat VC, a New York-based venture capital firm, has launched a $100 million fund to back early-stage AI startups in the US and India. Founded by Manish Maheshwari, Ravi Metta, and Aditya Mishra—tech veterans from Yahoo, Twitter India, and Intuit—Bat VC aims to invest between $3 million and $5 million in startups primarily in the AI, fintech, and enterprise sectors. The new fund, referred to as Fund 2, is a significant follow-up to the firm's initial $8.2 million fund, which has already seen success with a 29% internal rate of return and two exits. According to Mishra, the managing director and general partner of Bat VC, the firm focuses on startups that have achieved product-market fit, regardless of deficiencies in sales or technical expertise. This approach allows Bat VC to identify and support promising ventures that might otherwise be overlooked. The decision to invest in both the US and India stems from the firm's belief in the potential of these markets for mutual scaling, especially given the ongoing trade tensions between the US and China. India, in particular, is witnessing a startup boom. As of January 2023, the country had over 159,000 recognized startups, creating around 1.7 million direct jobs since 2016. Big Tech companies like Apple and Meta are increasingly setting up operations in India, further fueling the ecosystem's growth. One notable trend is the reverse brain drain, where Indian expatriates working in US tech giants are returning home to start their own companies, particularly in the consumer and fintech sectors. This influx of skilled talent is bolstering India's reputation as a hub for tech innovation, especially in AI. Ravi Metta, the US head and general partner of Bat VC, points out that the resurgence of AI has led to more companies outsourcing work to India, where a vibrant tech community is poised to capitalize on these opportunities. Mishra anticipates that supply chain constraints may also drive more Big Tech companies to establish operations in India, leveraging AI for logistics and manufacturing. This, in turn, could foster greater innovation in robotics and advanced manufacturing within the country. Manish Maheshwari, the India head and general partner, notes that many US founders are looking to tap into the Indian market, particularly for enterprise software. He likens this burgeoning relationship to the US-Israel tech corridor but believes it has the potential to be significantly larger. As the US continues to seek alternative manufacturing hubs in Asia, India's bilateral relationship with the US is expected to grow exponentially, giving India a distinct advantage in the tech landscape. The launch of Bat VC's second fund comes at a time when both the US and India are ripe with opportunities for tech and AI startups. Despite current fundraising efforts, the firm is in talks with over 10 limited partners, including institutional investors, family offices, fund of funds, and high-net-worth individuals. This broad base of support reflects the confidence and interest in India's tech sector from global investors. Industry insiders view Bat VC's strategy as highly strategic and timely. By bridging the gap between the US and Indian markets, the firm is positioning itself to capture the best of both worlds. The combination of experienced leadership, a focus on product-market fit, and a diverse portfolio of early-stage investments makes Bat VC a formidable player in the emerging tech ecosystem. India's growing importance as a tech hub, combined with its vast market potential and a surge in local talent, has attracted the attention of numerous VC firms. Bat VC's dual-market approach not only diversifies risk but also maximizes growth opportunities. With the ongoing trade disputes between the US and China, India stands out as a reliable and innovative partner, and Bat VC's Fund 2 is well-positioned to capitalize on this burgeoning trend. Founded in 2019, Bat VC has quickly established itself as a key player in the early-stage investment space. The firm's unique focus on the intersection of US and Indian tech ecosystems sets it apart from many other VCs. Its success with the first fund and the launch of the second fund underscore its ability to identify and nurture high-potential startups in a rapidly evolving market. In summary, Bat VC's $100 million Fund 2 is a strategic move that leverages the strengths of both the US and Indian tech markets. With a clear vision and experienced leadership, the firm is well-equipped to navigate the challenges and seize the opportunities presented by this dynamic environment. The fund's focus on AI, fintech, and enterprise sectors aligns with the current trends and future prospects of the tech industry, making it a promising investment vehicle in the global tech and AI startup landscape. Industry experts commend Bat VC for its forward-thinking approach and believe that the firm's unique position will enable it to foster significant innovation and entrepreneurial success. The growing interest from both US and Indian investors reflects the confidence in the firm's strategy and the potential of the markets it targets.