Why Is YourNest Betting Bigger On Its Existing Portfolio?
As India’s startup ecosystem matures and venture backed companies take longer to reach exits, investors are increasingly looking for new ways to remain invested in their strongest-performing businesses.
Deeptech focused venture capital firm YourNest has joined this trend with the launch of a ₹400 crore continuation vehicle, YourNest Continuum Fund I, aimed at supporting some of its most promising portfolio companies through their next phase of growth.
The fund has been anchored by HDFC AMC Select Fund of Funds I and is expected to deploy between ₹60 crore and ₹90 crore across a select group of startups that have already demonstrated strong market traction and business fundamentals.
For YourNest, the strategy is simple: stay invested in quality companies longer while creating liquidity opportunities for existing investors.
What Is A Continuation Fund And Why Is It Becoming Popular?
Continuation funds have emerged as one of the fastest growing structures in the global private equity and venture capital ecosystem.
Traditionally, venture capital firms are required to return capital to investors within a fixed fund lifecycle, often forcing exits even when portfolio companies continue to have significant growth potential.
A continuation fund solves this challenge by transferring selected portfolio companies into a new investment vehicle. Existing investors can either exit and realize returns or continue participating in the next growth phase of those companies.
For fund managers, it provides additional time to maximize value creation before pursuing acquisitions, strategic sales or public listings.
According to YourNest founder Sunil Goyal, continuation funds are increasingly becoming a preferred mechanism for balancing liquidity needs with long-term ownership of high-quality assets.
Which Startups Will Receive Capital From The Fund?
YourNest Continuum Fund I will focus on a concentrated portfolio of seven companies drawn from the firm’s existing investments.
Among the startups expected to receive capital are Miko, Dozee, Exponent Energy, Twid, Opkey and Thriwe.
These companies operate across sectors including healthcare technology, artificial intelligence, mobility, enterprise software and consumer technology areas where YourNest has built deep expertise over the past decade.
By concentrating capital into a smaller group of mature businesses, the firm aims to support scaling efforts while enhancing long-term value creation.
How Has YourNest Built Its Deeptech Investment Franchise?
Founded in 2011 by Sunil Goyal, YourNest has established itself as one of India’s early pioneers in deeptech investing.
Unlike generalist venture capital firms, YourNest has consistently focused on technology-led startups building proprietary products and intellectual property across sectors such as artificial intelligence, enterprise software, healthcare technology, mobility and advanced consumer technologies.
Over the years, the firm has backed dozens of startups navigating complex product development cycles and commercialization challenges.
Its investment philosophy has centered around identifying founders solving large-scale problems through technology and supporting them through multiple stages of growth.
Why Are Deeptech Companies Taking Longer To Exit?
Deeptech startups often require significantly longer development timelines than traditional internet or consumer businesses.
Building advanced technologies, obtaining regulatory approvals, creating intellectual property and achieving enterprise adoption can take years.
As a result, many investors are increasingly recognizing that longer holding periods may be necessary to unlock the full value of these businesses.
Continuation funds are emerging as an effective solution to support this evolution.
What Does This Mean For India’s Venture Capital Industry?
The launch of YourNest Continuum Fund I highlights a broader shift taking place within India’s venture capital ecosystem.
As startup companies stay private longer and mature into larger businesses, investors are exploring more sophisticated capital structures beyond conventional funding rounds and exits.
For startups, continuation funds offer access to patient growth capital without the pressure of immediate liquidity events.
For investors, they provide a pathway to continue participating in value creation while generating flexibility around portfolio management.
With deeptech increasingly becoming one of India’s most attractive startup sectors, YourNest’s latest fund reflects growing confidence in the long-term potential of technology-led businesses emerging from the country.
As more startups move closer to IPOs and strategic acquisitions, continuation vehicles could become a key feature of India’s next-generation venture capital landscape.
