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  <h2>Nexus Venture Partners Sets a Balanced Course with New $700 Million Fund</h2>

  <p id="speakable-summary" class="wp-block-paragraph">While many venture capital firms are fixated on AI investments, <a target="_blank" href="https://nexusvp.com/" rel="noreferrer noopener nofollow">Nexus Venture Partners</a> is strategically diversifying its portfolio with a new $700 million fund.</p>

  <h3>Diverse Investment Strategy: AI and Beyond</h3>
  <p class="wp-block-paragraph">The firm plans to not only support AI startups but also focus on India-centric ventures in consumer, fintech, and digital infrastructure sectors.</p>

  <h3>The AI Investment Landscape</h3>
  <p class="wp-block-paragraph">AI has <a target="_blank" href="https://www.bloomberg.com/news/articles/2025-10-03/ai-is-dominating-2025-vc-investing-pulling-in-192-7-billion" rel="noreferrer noopener nofollow">captured a significant portion of global venture capital</a>, and Nexus recognizes it as a pivotal technological shift. However, the firm warns that concentrating on a single, over-hyped category poses inherent risks. Instead, India’s digital economy offers a counterbalance, characterized by rising AI adoption and diverse opportunities.</p>

  <h3>Roots in Cross-Border Innovation</h3>
  <p class="wp-block-paragraph">Nexus, headquartered in Delaware with offices in Menlo Park, Mumbai, and Bengaluru, has been a unified fund with a cohesive U.S.–India team since its inception in 2006. The firm invests in early-stage software and India-focused startups from the same capital pool.</p>

  <h3>Expanding Portfolio and Successful Exits</h3>
  <p class="wp-block-paragraph">Over the years, Nexus's cross-border software investments have encompassed a wide range—from infrastructure tools to AI startups. Notable U.S. portfolio companies include Postman, Apollo, MinIO, Giga, and Firecrawl, all of which have seen substantial adoption in developer tooling and AI infrastructure.</p>

  <p class="wp-block-paragraph">In India, their portfolio spans various sectors including consumer goods, fintech, logistics, and digital infrastructure, with prominent investments such as Zepto, Delhivery, Rapido, Turtlemint, and Infra.Market.</p>

  <h3>AI: A Key Inflection Point</h3>
  <p class="wp-block-paragraph">“AI represents a significant inflection point, and we are anchored to that,” said Jishnu Bhattacharjee, a managing partner at Nexus in the U.S. “However, we are noticing that many AI innovations are designed to enhance services for the masses.”</p>

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  <h3>Commitment to Early-Stage Investments</h3>
  <p class="wp-block-paragraph">Nexus manages $3.2 billion in total capital and has invested in over 130 companies, achieving more than 30 successful exits, including several IPOs, which highlight its long-term, early-stage investment approach.</p>

  <p class="wp-block-paragraph">Managing partner Abhishek Sharma stated to TechCrunch that the firm primarily focuses on inception to seed and Series A rounds, initiating investments with checks ranging from a few hundred thousand to around $1 million.</p>

  <h3>Maintaining Fund Size for Strategic Growth</h3>
  <p class="wp-block-paragraph">With an eight-member investment team, Nexus began with a $100 million fund and has maintained a fund size of $700 million since <a target="_blank" href="https://m.economictimes.com/tech/funding/nexus-venture-partners-closes-its-largest-ever-fund-at-700-million/articleshow/98329133.cms" rel="noreferrer noopener nofollow">launching Fund VII in 2023</a>. The firm typically raises funds every 2.5 to 3 years. Bhattacharjee emphasized that maintaining the current fund size reflects their belief in its suitability for their early-stage investment strategy.</p>

  <p class="wp-block-paragraph">“Our goal is not to raise capital for the sake of it,” he noted.</p>

  <h3>India’s Promising AI Landscape</h3>
  <p class="wp-block-paragraph">Although India's AI development may <a target="_blank" href="https://techcrunch.com/2024/06/30/here-are-indias-biggest-ai-startups-based-on-how-much-money-theyve-raised/" rel="noreferrer noopener">lag behind the U.S.</a> in some areas, Nexus sees potential for the country to leap ahead in various aspects of the AI ecosystem. </p>

  <p class="wp-block-paragraph">Bhattacharjee highlighted India’s vast talent pool, increasing digital infrastructure, and the necessity for localized models to cater to the country's multiple languages and service needs. These factors are driving Indian startups to develop AI applications more rapidly, often utilizing open-source technology and emerging domestic AI infrastructure companies.</p>

  <h3>Showcasing Success: AI Innovations in India</h3>
  <p class="wp-block-paragraph">The partners at Nexus cited companies like Zepto and Neysa to exemplify the evolution of AI in India. Zepto, a quick-commerce platform, leverages AI extensively across its operations—from customer service to routing and fulfillment—highlighting how consumer businesses are becoming increasingly AI-integrated. Additionally, infrastructure firms like Neysa are emerging to address unique Indian requirements, such as sovereign AI workloads and localized data processing.</p>

  <p class="wp-block-paragraph">While Nexus didn't disclose specific fund metrics, partners affirmed that their funds have generated significant returns over the years, allowing them to sustain the current fund through returning limited partners. Their investor base spans the U.S., Europe, the Middle East, Southeast Asia, and Japan.</p>
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Here are five frequently asked questions (FAQs) regarding Nexus’s decision to hold half of its new $700 million fund for India startups while not fully committing to AI:

FAQs

1. Why is Nexus not committing fully to AI with its new fund?

Nexus believes in a balanced approach to investment. While AI presents significant opportunities, the firm recognizes the need for diverse innovations across various sectors, particularly in the dynamic Indian startup ecosystem.

2. How much of the $700 million fund is allocated for India startups?

Nexus has allocated half of its new $700 million fund, which means approximately $350 million will specifically target startups in India. This reflects the firm’s confidence in the potential of Indian entrepreneurship.

3. What types of startups is Nexus looking to fund in India?

Nexus aims to invest in a range of sectors, including fintech, health tech, e-commerce, and more, while still considering AI-driven solutions. The focus is on startups that demonstrate strong growth potential and innovative business models.

4. What are the potential benefits of focusing on India startups for Nexus?

Investing in Indian startups allows Nexus to tap into a rapidly growing market with a vibrant tech ecosystem. India’s diverse demographic and increasing digital adoption create significant opportunities for innovation and scalability.

5. How does Nexus’s strategy compare to other investment firms focusing on AI?

While many firms are prioritizing AI, Nexus’s strategy of maintaining a balanced portfolio reflects its understanding of market dynamics. This approach allows them to mitigate risk and capitalize on various emerging trends beyond AI, ensuring a more sustainable investment strategy.

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