Elevation Capital is expanding its focus from early-stage startups to companies that it believes are adding value in public markets by launching a new $400 million fund to support businesses for the long run.

The late-stage vehicle, Elevation Holdings, will invest in ten to fifteen businesses with check sizes ranging from $20 million to $50 million, according to a report. The new fund will mainly support technology-focused businesses in the consumer and financial services sectors.

Key Highlights

• Elevation Capital launches $400 million late-stage fund, signaling strategic shift to support IPO-bound startups.
• New fund allows Elevation to write $20-50 million cheques for companies nearing public listings.

"We have much longer investment horizons and will hold the stock for a sufficient amount of time to be regarded as permanent holders." For a business of that size, we also have the option of a non-intrusive check size," Elevation Capital partner Mridul Arora stated.

Elevation Holdings will function alongside its Fund VIII, an early-stage investment vehicle worth $670 million that invests $2–5 million in startups. It will examine businesses that are either profitable or have a clear path to profitability and are no more than three years away from going public. The new fund has already made an investment in Spinny, a marketplace for used cars.

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Elevation Capital has made investments in IPO-bound startups like Meesho and Urban Company as well as publicly traded companies like FirstCry, Ixigo, MakeMyTrip, Paytm, and Swiggy. The fund recently made two consecutive partial withdrawals from Ixigo, a travel technology company.