Lightspeed closes funds worth $4.2 Bn, $1.5 Bn to back startups in India-SEA

US-based venture capital firm Lightspeed Venture Partners has marked the close of its funds worth $4.2 billion across the three funds including its first global opportunity fund. 

While Lightspeed Venture Partners XIII has $890 million for seed, Series A, and Series B rounds, a $1.83 billion growth fund under Lightspeed Partners Select V has been kept for later-stage investments.

A new Lightspeed Opportunity Fund worth $1.5 billion would be specifically invested in early and growth stage startups in India, China, Israel, Europe, and Southeast Asia. 

Just as the Covid-19 pandemic has started hitting the economy and putting startups out of their business, the VC firm would be deploying these mega funds to back those startups emerging out of the ongoing crisis.

Besides these three funds, Lightspeed is also reportedly looking to close its third India focused fund ranging in between $250-300 million. Other VC firms including Sequoia India and Accel are also planning to launch initiatives to fight off the ongoing crisis. 

Recently, Lightspeed along with a group of top VC firms had also written an open letter cautioning startups to be prepared for a runaway of 12-18 months. The letter highlighted how the investors are now going to focus on reasonable growth with a path to profitability and founders should alter their business plans accordingly. 

Having made more than 800 investments and helping over 400 companies since its inception in 2000, many of Lightspeed's best-known portfolio companies in India include B2B e-commerce marketplace Udaan, HR tech startup Darwinbox, Zetwerk, ThoughtSpot, FamPay, Magicpin, and Freight Tiger among others. 

Its most recent investment includes leading a Rs 109.21 crore ($14.56 million) Series A round in software maker startup Setu. Entrackr has exclusively reported about this development.