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First Cheque Targets 15-20 Startup Investments with Larger Pre-Seed Fund for D2C Focus!

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Early-stage venture capital firm First Cheque, a part of India Quotient, plans to back 15-20 startups over the next 18 months with its third cohort. This time, First Cheque is setting up initial investments as high as $500,000, reflecting a significant increase in their funding strategy aimed at supporting emerging businesses.

Growing Pre-Seed Funding Landscape

Kanika Agarrwal, a partner at India Quotient, noted the evolving pre-seed funding landscape, stating:

“The pre-seed market offers a variety of funding options today, including angel investors, family offices, and micro VCs. We’re adjusting our program to collaborate with these groups, allowing us to make larger investments.”

This shift highlights First Cheque’s commitment to adapting its investment approach to meet the needs of the current market and to leverage the growing interest in early-stage funding.

Background of First Cheque

Founded in 2018 under the India Quotient umbrella, First Cheque primarily funds early-stage startups with support from family offices and institutions in India and globally. The firm has a sector-agnostic investment strategy but is particularly interested in direct-to-consumer (D2C) startups for this cohort. Agarrwal emphasized the need for brands that stand out in less saturated categories.

“There’s an abundance of D2C brands, but we’re seeking truly unique ones in underrepresented categories—think kids’ brands, sports, white goods, and brands for Gen Z,” she said, highlighting a focus on the younger demographic where “me too” brands are less common.

Investment Strategy and Portfolio

Bengaluru-based First Cheque has already invested in over 130 startups, supporting diverse companies such as jewelry brand Giva, SaaS startup Rocketlane, career platform Seekho, fleet management tool Fleetx, RO water provider DrinkPrime, and generative AI startup Simplismart. The firm aims to leverage its experience and networks to help new ventures scale effectively.

Financial Performance

In its previous funding rounds, First Cheque has successfully raised capital from various investors. For instance, it closed its second fund at approximately ₹38 crore (around $4.75 million) and has been actively involved in nurturing first-time founders through mentorship and resources.

Competitive Landscape

The Indian startup ecosystem is highly competitive, with numerous players vying for market share in various sectors. First Cheque’s focus on D2C brands aligns with broader trends indicating increased consumer preference for personalized shopping experiences. By targeting underrepresented categories, First Cheque aims to differentiate itself from other venture capital firms that may overlook niche markets.

Future Outlook

As First Cheque embarks on this new investment strategy, it will be crucial to monitor how these investments perform in the rapidly changing market landscape. The firm’s ability to identify unique opportunities within the D2C space could position it favorably for future growth and success.

Conclusion

First Cheque’s initiative to target 15-20 startups with larger pre-seed investments marks a significant evolution in its funding strategy. By focusing on D2C brands that offer unique value propositions, the firm aims to capitalize on emerging trends within the Indian startup ecosystem.

As this new cohort unfolds over the next 18 months, it will be interesting to see how First Cheque leverages its resources and networks to support these startups in achieving their growth objectives while navigating the competitive landscape of early-stage investments. The commitment to enhancing the pre-seed funding environment reflects a proactive approach to fostering innovation and entrepreneurship in India.

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