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Mumbai: Starfish Growth Partners and Investpad have jointly launched an innovation fund that will raise $100 million to invest in early stage startups over the next three years, both firms said on Monday.

The Starfish Investpad Innovation Fund will provide capital and fundraising advisory, business incubation and growth acceleration services, senior executives at both firms said.

The Starfish-Investpad fund will remain industry agnostic but with a special focus on verticals such as education, manufacturing, deep-tech, agriculture, fin-tech, healthcare and sustainability, said Philip Thomas, founding partner and chief executive of Starfish Growth Partners, an idea-stage capital, incubation and accelerator advisory firm.

“We look forward to investing anywhere between Rs 25 lakh and $10 million in companies,” Thomas said.

India has seen major advancements in home-grown businesses making a mark on the global stage, but it is still at a nascent stage when it comes to accelerating the right culture of innovation. Bright founders with game-changing ideas are led to throw in the towel early.

“This is not just due to the lack of capital but also the right support system that will help them navigate everyday challenges. We believe in evaluating every idea on the same baseline – potential to make a real world impact at scale, technology immersion and addressing clear market gaps,” he said.

Starfish has incubated more than 25 startups, raised over Rs 125 crore in capital and has already helped more than 50% of its portfolio companies become profitable.

Investpad provides the critical growth capital required to launch the best moon-shot ideas and catapult them onto the right trajectory for success.

“We want to build something that allows our entrepreneurs to thrive. Despite startups being a buzzword for many years in India, founders have to rely on funds from family and friends to begin with. We want to bring a seismic shift in the confidence level of deserving founders to bring their ideas to life,” said Sai Abhishek Rayarao, chief executive of Investpad.

According to Thomas and Rayarao, the number of funded companies that fail remains abysmally high in India despite a lot of capital flowing in each year.