Lightspeed targets $250M for AI-focused early-stage fund in India

Lightspeed is targeting $250 million for a new early-stage fund in India dedicated to AI investments, as the Silicon Valley venture firm sharpens its strategy around artificial intelligence in the region. The fund, Lightspeed India Partners V, has already received commitments for 80% of its target, according to an investor letter.

The new fund is half the size of Lightspeed's $500 million India vehicle raised in 2022. The firm plans to start investing from the fund within two months and has structured it around an investment period of roughly two and a half years. It will also be the first India fund raised on the same timeline as Lightspeed's global funds.

Lightspeed, which manages more than $65 billion in assets, has backed AI companies including Anthropic, xAI and Databricks, and has invested in Indian LLM developer Sarvam AI. The investor letter says AI is expected to create more value in India than the internet did, and the fund will target AI startups across India and Southeast Asia. The same team that managed Lightspeed's four previous India funds will oversee the new vehicle.