Why Is YourNest Launching A Continuation Fund?
As India’s startup ecosystem matures, venture capital firms are increasingly looking beyond traditional investment cycles to maximize returns from their strongest-performing portfolio companies.
Deeptech-focused venture capital firm YourNest has announced the final close of its ₹400 crore continuation vehicle, YourNest Continuum Fund I. The fund is designed to support a select group of high-growth startups while simultaneously providing liquidity opportunities to existing investors.
The fund has been anchored by HDFC AMC Select Fund of Funds I, highlighting growing institutional interest in India’s deeptech ecosystem and long-term venture capital opportunities.
The launch also reflects an emerging trend in private markets, where investors are choosing to remain invested in successful startups for longer periods as companies take more time to reach strategic exits or public listings.
What Is A Continuation Fund?
A continuation fund is a specialized investment vehicle that allows venture capital firms to transfer mature and high performing portfolio companies into a new fund structure.
This provides existing investors with an opportunity to exit and realize returns while allowing fund managers to continue supporting companies that still possess significant growth potential.
For venture firms, continuation funds offer a way to capture additional upside from businesses that have already proven their technology, product market fit and commercial viability.
According to YourNest founder Sunil Goyal, continuation funds are becoming an increasingly important tool for generating liquidity while maintaining ownership in quality startups that continue to create value.
Which Startups Will Receive Fresh Capital?
YourNest Continuum Fund I plans to deploy between ₹60 crore and ₹90 crore across a concentrated portfolio of seven companies.
Among the startups expected to benefit from the fund are Miko, Dozee, Exponent Energy, Twid, Opkey and Thriwe.
These companies operate across sectors such as artificial intelligence, healthcare technology, mobility, enterprise software and digital consumer platforms, areas that continue to attract significant investor interest globally.
The continuation fund will help these startups access patient growth capital as they move closer to large-scale expansion, acquisitions or potential IPOs.
How Has YourNest Built Its Deeptech Investment Platform?
Founded in 2011 by Sunil Goyal, YourNest has established itself as one of India’s leading deeptech focused venture capital firms.
The firm has consistently invested in startups building technology driven products across artificial intelligence, enterprise software, healthcare technology, mobility solutions and consumer technology.
Unlike many generalist venture funds, YourNest has focused on businesses with strong intellectual property, proprietary technology and long-term innovation potential.
Over the years, the firm has built a diversified portfolio of startups solving complex challenges across industries through advanced technologies and scalable business models.
Why Are Deeptech Startups Taking Longer To Mature?
Deeptech companies often require longer development cycles than traditional internet startups.
Building advanced technologies, securing enterprise customers, obtaining regulatory approvals and creating defensible intellectual property can take several years.
As a result, many promising startups continue generating significant value long after the lifecycle of their original venture funds.
Continuation funds help bridge this gap by providing investors with flexibility while ensuring startups continue receiving strategic and financial support during critical growth stages.
What Does This Mean For India’s Startup Ecosystem?
The launch of YourNest Continuum Fund I highlights the increasing sophistication of India’s venture capital landscape.
As more startups mature into scalable businesses, investors are adopting global private-market structures to optimize returns and support long-term value creation.
For founders, such vehicles offer access to patient capital without the pressure of immediate exits. For investors, they provide an opportunity to remain invested in proven businesses with strong growth visibility.
With deeptech emerging as one of the most promising sectors within India’s innovation economy, YourNest’s latest initiative signals growing confidence in the country’s ability to build globally competitive technology companies.
As startups across AI, healthcare, enterprise software and mobility continue to scale, continuation funds could become an increasingly important part of India’s venture capital ecosystem.
