Together Fund Aims to Close $150M Fund-II by June, Focusing on AI Startups

Together Fund's AI-Focused Investment Strategy

Together Fund, a venture capital firm founded by tech entrepreneurs Girish Mathrubootham and Manav Garg, is gearing up to make a significant impact in the artificial intelligence (AI) sector. The firm is set to close its $150 million Fund-II by June, with a strong focus on supporting AI startups 1

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Fund Details and Investment Plans

Together Fund's second fund, which marked its first close in July 2023, has attracted interest from institutional investors in the US and Asia 2

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. The firm plans to invest between $1-$5 million in seed and Series A rounds of startups 2

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. With 31 investments already made across its two funds, Together Fund aims to back another 19-20 startups specifically in the AI segment through Fund-II 1

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Focus on AI Applications

Manav Garg, co-founder and managing director of Together Fund, highlighted India's strengths in building AI applications. He emphasized the country's historical expertise and large talent pool of operators and developers as key advantages 1

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. The firm is particularly interested in startups working on the applications layer of the AI stack, which includes vertical AI applications.

Portfolio and Success Metrics

Together Fund's AI portfolio already includes diverse startups such as:

• Thesys: A design copilot platform
• Metaforms: AI agents for market research
• Composio: Integration of AI agents with large language models (LLMs)
• Chaotix: A generative AI gaming platform 1

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Garg noted that seven of Together Fund's portfolio companies are expected to close Series A rounds in the next four to six months 1

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. The firm evaluates potential investments based on high user adoption, stickiness, and revenue growth potential.

Market Trends and Opportunities

Despite a slowdown in overall AI investments in India, with a 26% decrease to $747 million in 2024, the number of deals in the segment increased from 78 to 121 1

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. Garg observed that while investment activity has been slow, company formation in the AI sector has been ongoing, with over 200 companies being reviewed monthly by Together Fund 1

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Leadership and Expertise

Together Fund has strengthened its leadership team to support its AI-focused strategy. In August 2024, the firm brought in Lakshmi Shankar, former vice president of search at Google, as a general partner to head its San Francisco office 1

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. This move, along with the founders' operational experience, positions Together Fund to identify trends and support fast-growing products in the Indian market.

As the AI landscape continues to evolve, Together Fund's targeted approach and expertise in the SaaS and AI sectors position it as a significant player in shaping the future of AI startups in India and beyond.