More micro VCs take shape as domestic investors up exposure

The formation of micro venture capital funds in India has picked up momentum over the past few years, with domestic limited partners (LPs) increasingly backing small, theme-driven funds that promise more attention and better returns potential, multiple investors and fund managers told ET.

As per data from Indian Venture and Alternate Capital Association (IVCA), there are more than 250 active micro-VC funds now in the country, compared with around 200 in 2024.

Micro VCs are early-stage vehicles with fund sizes ranging from as low as Rs 50 crore to a…