Growth stage-focused Physis Capital announced its first close of CAT II $50 million fund. The first close has reached $7 million and is on track to do the final close in 2024. 

Physis Capital will actively look to invest from its first fund by the third quarter of 2023 in start-ups looking to raise Pre Series A to Series B capital. The fund, which is a sector-agnostic fund, is looking to build a portfolio of 15 to 20 start-ups, with an average ticket size of $2.5 million.

It will be focused on identifying companies that have a solid business model and are likely to generate sustainable returns in the long term while avoiding those with high cash burn, high capex requirements, and low customer stickiness.

Focus areas

Vinay Bansal, Partner, Physis Capital says, “Our biggest strength will continue to be the support we offer to our start-ups post investment — helping them attract good talent, build partnerships, generate revenue opportunities, strong focus on cost management and compliance and support future debt and equity funding rounds using the deep relationships built with different stakeholders in the start-up ecosystem.”

The fund will also focus on strong deal-sourcing and pipeline-building strategy which would be a key driver to Physis’ success in accessing unique opportunities to invest. The due diligence will be done through a proprietary 200+ point checklist across business quality, founders’ abilities, supply chain, scalability, competition, differentiation factors and many more.