Synapses Announces £125 Million Investment Fund for Climate and Healthtech Startups

Venture capital firm Synapses announced its ambitious plan to launch a USD 125-million (approximately Rs 1,040 crore) fund dedicated to investments in climate and healthtech companies. This initiative, spearheaded by IIT alumni and seasoned venture capitalists Ruchira Shukla and Karthik Chandrasekar, is designed to foster the growth of early-stage startups. These startups are distinguished by their use of STEM (science, technology, engineering, and math) and intellectual property (IP) to address critical challenges in climate and health sectors.

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Shukla, co-founder and managing partner at Synapses, revealed that the fund would be registered with the Securities and Exchange Board of India (Sebi) under Alternate Investment Fund Category -2. The process of raising the entire corpus is anticipated to span one to two years. "We will register this USD 125 million fund with Sebi under AIF-2 this month. We expect to raise it in one-two years," she stated. Shukla's expertise includes a 12-year tenure at the International Finance Corporation, where she led the disruptive technologies business in South Asia, facilitating investments in early-stage technology ventures.

Karthik Chandrasekar, also a co-founder and managing partner, emphasized the necessity for climatetech and healthtech solutions to embody STEM innovation while being agile, resilient, and ready for future challenges. These solutions must be scalable to utility levels to effectively address the complexities of commercialization in these sectors. "Commercialising innovations at this intersection is hard and requires deep sector immersion. We are taking on this challenge because solving for this complexity is what drives alpha and impact," he explained.

India's commitment to combating climate change necessitates substantial financial input. According to the Climate Policy Initiative, over USD 170 billion (about Rs 14.14 lakh crore) is required annually in climate finance to meet its Nationally Determined Contributions (NDCs) under its climate change commitment. Synapses' new fund aims to contribute significantly towards meeting these financial demands by investing in innovative solutions that tackle pressing climate and health issues.

The initiative by Synapses represents a strategic effort to bridge the gap between scientific innovation and market viability, supporting startups that are poised to make significant contributions to climate change mitigation and healthcare advancements. By focusing on STEM and IP-driven ventures, Synapses is positioning itself at the forefront of addressing some of the most urgent global challenges through technological and scientific breakthroughs.