Having morphed from a proprietary fund into one that invests in early-stage ventures, Fulcrum Ventures will continue with its focus on the pharmaceutical and wellness space.
That is because of historical reasons, explains Krishna Ramanathan, Founder-Partner, Fulcrum.
Fulcrum was set up with the money that Krishna’s father gave him, from the proceeds that he got by selling the pharmaceutical company that he had started. Since there was a non-compete clause for three years after the sale, the fund was invested in non-pharma sectors, including in one real-estate company.
Once the three-year period ended, Krishna started investing from the fund in the pharma and wellness space, essentially as early-stage investors, using the proprietary money.
The fund invested in four companies along with others. It was after it exited its investment in real-estate company Casa Grande that Krishna decided to convert Fulcrum into a SEBI-registered venture capital fund, and put in ₹26 crore from his own kitty.
Fulcrum is now in the process of becoming a ₹85-crore fund, of which it has done the first close of ₹60 crore. Most of the investors are good quality people, he says.
One is a partner with consultancy firm McKinsey and another is a wealthy individual.
Krishna says that since it is only now that he has come out to raise funds, there are individuals cutting small cheques.