Synapses Launches: $125 Million Fund Backs Climate & Health Tech Innovation

Synapses, a new venture capital firm co-founded by IIT alumni Ruchira Shukla and Karthik Chandrasekar, has entered the scene with a focus on climate tech and health tech startups. This $125 million (approximately Rs 1,040 crore) fund aims to bridge the gap between scientific ingenuity and commercialization, supporting innovative solutions for pressing global challenges.

• Focus on STEM-driven Solutions: Synapses invests in startups leveraging science, technology, engineering, and mathematics (STEM) to address critical climate and health issues.

• Fund Size and Investment Strategy: The $125 million fund will support 25 early-stage startups with proven products tackling major climate and health challenges.

• Emphasis on Sustainability and Efficiency: Synapses prioritizes high capital efficiency, business models with clear profitability pathways, and solutions that minimize resource depletion.

• Targeted Returns: The firm anticipates 5x-7x returns on their investments at the fund level.

• Geographical Reach: India forms a core market, alongside other South Asian economies.

• Policy Advantage: Synapses leverages its Delhi location to foster strong partnerships with policymakers for a supportive regulatory environment.

• Collaboration Ecosystem: Beyond the venture fund, Synapses operates an incubator with NITI Aayog and a multi-year seed investment program, fostering innovation across the climate and health tech landscape.

Experienced Leadership:

Synapses is led by a team with a strong track record. Ruchira Shukla, former South Asia investment lead for the World Bank Group's IFC, brings expertise in impact investing. Karthik Chandrasekar, founder of the early-stage climate fund Sangam, adds valuable experience in the climate tech sector.

Addressing Critical Challenges:

Climate change and health issues are major global concerns. Synapses addresses these challenges by promoting innovative solutions built upon a strong scientific foundation. By supporting sustainable, capital-efficient business models, they aim to create a positive impact while generating strong returns.

Collaborative Approach:

Synapses recognizes the importance of a collaborative ecosystem. Their incubator with NITI Aayog and seed investment program demonstrate their commitment to fostering innovation and working with key stakeholders like policymakers for a supportive environment.

Looking Forward:

Synapses' launch marks a significant development in India's venture capital landscape. Their focus on climate tech and health tech aligns with global priorities, and their experienced leadership positions them to play a critical role in supporting impactful startups. The firm's emphasis on collaboration and capital efficiency further strengthens their potential for success. As they close their fund and begin deploying capital, Synapses has the potential to make a significant contribution to accelerating innovation in critical areas.