YourNest Venture Capital, India’s pioneering early-stage DeepTech VC, has announced the final close of its Continuation Vehicle (CV), the YourNest Continuum Fund I. With a corpus of approximately Rs 400 cr, the fund encapsulates market-leading portfolio businesses that continue to be winners, powering economic growth, and capitalising on high growth potential, including Miko, Dozee, Thriwe, Opkey, Twid, and Exponent Energy. This news also comes on the back of the formal closure of its first fund – the Rs 83.4 cr, 2012-vintage fund – with a final DPI of 3.3x.
In a landmark development for the domestic private capital markets, HDFC AMC Select FOF I has joined the vehicle as the incoming anchor investor, establishing a robust, market-validated valuation structure designed to catalyse the next phase of evolution for the Indian venture capital industry. It is worth noting here that YourNest’s flagship Fund III had secured the National Infrastructure and Investment Fund (NIIF) as its anchor investor in 2021. YourNest Continuum Fund I has been well oversubscribed with several marquee family offices and individuals from the country investing alongside a significant number of YourNest’s existing investors rolling over their stake into the Fund.
Continuum Fund Strategic Imperative G Core Objectives
YourNest Continuum Fund I is being launched as a specialised Secondaries Vehicle to transition mature, high-potential assets nearing the end of traditional fixed-term fund lifecycles into an extended patient-capital framework. In addition to this, the launch addresses several critical objectives for the fund’s stakeholders:
- Immediate Liquidity Realisation: It offers an immediate liquidity pathway for existing Limited Partners (LPs), directly boosting Distributed to Paid-in (DPI) metrics and facilitating domestic capital
- Mitigating Sub-optimal Exits: The vehicle explicitly eliminates the pressure to force asset liquidations or fire sales, traditionally triggered by rigid fund term limits, which tend to under-realise the inherent value of late-stage This is especially important, keeping in mind the longer gestation period DeepTech startups require.
- Fair, Independent Valuations: By securing HDFC AMC Select FOF I as the incoming anchor, the underlying portfolio is subjected to a rigorous, transparent, and completely independent institutional pricing
A Hybrid Investment Approach
Globally, Continuation Vehicles are positioned as a modern hybrid model between traditional fixed-term funds and open-ended evergreen funds. While India has seen
fewer such funds to date, the Continuum Fund I enables YourNest to selectively advance its highest-conviction assets into a fresh operational horizon. This approach provides continuous, stable funding and hands-on operational nurturance – the core philosophy on which YourNest was founded in 2011 with Nurture Capital in its DNA – a necessity for DeepTech founders facing prolonged gestation periods. The fund structure reaffirms YourNest’s agile and proven approach towards exit management and maximising investor value while ensuring its deep advisory commitment, strict governance oversight, and comprehensive reviews to steer these IP-backed, market-proven, derisked businesses toward global scale.
Valuation Metrics and Asset Performance
The asset transfer comprises high-performing holdings across YourNest’s portfolios, thus that winners build a habit of keeping on winning. Hence, it achieved a good ‘Multiple-on-Invested Capital’ (MoIC) of 11.8x across three assets in Fund I and 10.7x across five assets in Fund II.
Management Ǫuote
“True leadership in the venture ecosystem demands the courage to rewrite old paradigms when the long-term success of our founders and investors is on the line,” said Sunil Goyal, Managing Director G Fund Manager at YourNest Venture Capital. “By launching the Continuum Fund I, we are purposefully pursuing a larger ecosystem ambition for patient capital and to prioritise liquidity for our steadfast partners who have stood alongside us for over a decade. At a time of geopolitical uncertainty, we are firmly and boldly stepping forward to guarantee that India’s DeepTech champions receive the extended, hands-on capital alignment they need to scale globally without the distraction of premature exits.”
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