Focus, discipline and realised returns to define India's next generation of fund managers: Grant Thornton Bharat–IVCA report

As fundraising activity recovers and larger pools of capital return to the market, emerging managers are increasingly being judged on investment discipline, differentiation and realised outcomes.

India, November 12, 2026: Grant Thornton Bharat (GTBharat), in collaboration with the Indian Venture and Alternate Capital Association (IVCA), has released the Emerging Managers Report 2026: From first fund to lasting franchise, a study of first- and second-time venture fund managers in India. The report finds that emerging managers have a significant opportunity ahead. India's recognised startup base crossed 250,000 in October 2026, more than half of it beyond the metros. Domestic venture fundraising doubled to USD 5.4 billion in 2025. As the market becomes more selective, with seed funding down 37% in the first nine months of 2026, emerging managers who bring focus and specialist knowledge will be central to finding and backing India's next generation of companies.

Looking ahead to 2030, the report identifies the priorities that will help emerging managers deliver better exits and stronger returns for their LPs. These include a clear, research-led investment thesis, fund sizes matched to realistic exit outcomes, and disciplined reserves for follow-on rounds. They also include active support for portfolio companies as they scale and early planning for strategic sales, secondaries and IPOs. The report calls for a stronger support system around new managers, including a dedicated pathway for first-time managers within the INR 10,000 crore Startup India Fund of Funds 2.0. Together, these steps can help emerging managers grow into trusted specialist funds that channel long-term capital into India's startup and innovation ecosystem.

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Emerging venture fund managers in India

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Emerging managers who build their investment thesis on rigorous research and independent conviction may face a tougher first fundraise, but they give themselves a better chance of succeeding over the long term. Before approaching LPs, managers should be able to demonstrate a clear investment strategy, differentiated sourcing and a pipeline of companies that fit the thesis.

Amarjeet Makhija, Partner, Grant Thornton Bharat.

India’s venture capital ecosystem is entering a phase where the strength of emerging managers will be measured not just by their ability to raise capital, but by their ability to build sustainable investment businesses. Emerging managers play an important role in identifying new sectors, backing underserved opportunities and broadening the country’s investment landscape. The priority now must be to strengthen access to institutional capital, create more predictable pathways to liquidity and enable credible managers to scale beyond their first fund. A stronger emerging manager ecosystem is essential to the long-term depth and resilience of India’s private capital markets.

Anisha Singh, Founder & Managing Partner, She Capital; Executive Committee Member & Co-Chair, Emerging Managers Council, IVCA 

Therefore, India's venture ecosystem is no longer constrained by a lack of entrepreneurial ambition or capital. The next challenge is ensuring that a broader base of fund managers can consistently identify promising businesses, back them through critical growth stages and deliver outcomes for investors. While fundraising conditions have improved, expectations around performance, governance and liquidity have risen in parallel. 

The managers best positioned to succeed over the coming decade will be those that combine differentiated sourcing with disciplined deployment, strong portfolio support and a clear path to value realisation. As the ecosystem continues to mature, enabling more first-time managers to scale into enduring fund franchises will be critical to expanding India's private capital landscape and supporting the country's next generation of high-growth businesses.