Investor and former executive at Venture Highway, Aviral Bhatnagar, has successfully closed AJVC’s (A Junior VC) inaugural ₹100 crore fund. AJVC aims to invest in 12-15 startups annually, focusing on emerging technologies such as AI, SaaS, and consumer technology.
This fund is specifically designed to target the pre-seed stage in India, a sector Bhatnagar believes remains largely untapped in the country’s startup ecosystem. “I did not expect this kind of response when I started the fund. Beyond hitting our target raise, we have received over 5,500 applications and made nine investments. The response is both overwhelming and humbling,” said Bhatnagar.
Started in 2018 by Bhatnagar, AJVC has already invested in nine startups across various sectors. These investments include five AI startups, two D2C brands, one B2B company, and one consumer tech firm. The fund’s sector-agnostic approach allows it to explore diverse opportunities, aligning with India’s growing tech landscape.
According to reports, the ₹100 crore fund was oversubscribed, exceeding its initial target. AJVC is considering exercising the green shoe option to capitalise on the overwhelming interest. This strategic move reflects the fund’s strong appeal to investors and growth potential.
Rise of Micro VCs
The Indian startup ecosystem is witnessing a surge in micro VCs, which are filling the early-stage funding gap. The pre-seed funding space is particularly important, as it provides essential capital for startups to develop and scale their ideas.
While late-stage AI startups attract funding from large VC firms and global investors, early-stage capital remains scarce, creating a gap that microVCs are filling. The Indus Valley Annual Report 2025 highlights a shift where seed rounds exceeding $3 million now make up half of early-stage funding, while sub-$1 million rounds have sharply declined.
This trend has made it increasingly difficult for first-time AI founders to raise capital, paving the way for micro VCs to bridge the funding shortfall. AJVC’s efforts align with a trend where micro VCs are increasingly important.
Unlike larger VCs that favour proven founders and market traction, micro VCs take on high-risk, high-reward bets, particularly in deep tech and AI. Their key advantage lies in domain expertise.
Rather than offering broad seed funding, they specialise in AI, SaaS, or deep tech, providing not just capital but also technical mentorship, AI model optimisation, and go-to-market strategies tailored for AI startups.
