Elevation Capital, a venture capital firm focused on early-stage investments, has collected $400 million for a new fund aimed exclusively at late-stage investments as the investor reinforces its commitment to opportunities in India and seeks to support modern companies that have multiple years of significant growth potential ahead.

Elevation Holdings plans to issue cheques ranging from $20 to $50 million, targeting modern companies on the verge of a public market debut. It will maintain its investment in these companies even post-IPO.

“We think a partner with a venture DNA, who can be truly patient and long-term, is what founders desire at that (pre-IPO) phase, as increasingly, your investors become hedge funds and mutual funds that are frequently rotating in and out,” Mukul Arora, Co-Managing Partner at Elevation says.

“At that point, as a founder, it’s essential to have investors who can collaborate with you and share comparable time perspectives regarding your business and the path forward. We will deliver that enduring capital," adds Mukul.

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Even though it enters at a substantially later phase in a company's existence, Elevation is convinced that the chance to achieve significant returns by investing in modern businesses is still abundant.

Arora mentioned that India as a nation has significant economic growth and per capita income growth still in its future. Elevation believes that there will be multi-decadal compounding that will persist for numerous late-stage companies.

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“Certain modern companies will grow exponentially like HDFC, Asian Paints, Titan, and more. Crucially, numerous contemporary companies continue to be managed by relatively young, extremely driven founders. Arora stated during the interview that the founders, currently in their mid-30s to early 40s, possess decades of opportunity still available to them.

Elevation Capital, an investor in numerous late-stage firms such as Acko, BookMyShow, Meesho, Paytm, Swiggy, and more, plans to execute only 2-4 transactions annually through Elevation Holdings.