Nexus isn’t going all-in on AI, keeping half of its new $700M fund for India startups (techcrunch.com)

Nexus Venture Partners has announced a strategic approach for its new $700 million fund by splitting its focus between AI startups and India-focused ventures in sectors like consumer, fintech, and digital infrastructure. While many venture capital firms are heavily investing in AI, Nexus emphasizes the potential risks of concentrating solely on this overheated market. By backing a diverse range of startups in India’s growing digital economy, the firm aims to leverage the country's expanding AI adoption and its vast talent pool, acknowledging that innovations tailored to serve the masses hold significant potential. Nexus has a track record of successful investments, managing $3.2 billion across its funds with over 30 exits to date. The firm is particularly interested in early-stage companies, often investing between a few hundred thousand to around $1 million, and sees India’s unique needs, such as support for multiple languages and localized solutions, as key drivers for rapid AI development. Nexus partners highlighted examples like Zepto, a quick-commerce platform leveraging AI for operational efficiency, showcasing how consumer businesses in India are increasingly becoming AI-native. This balanced investment strategy not only mitigates risk but also positions Nexus to capitalize on the growing opportunities within both the AI and Indian startup ecosystems.