Boutique investment banks like Sprout Capital, Merisis Advisors, and Dexter Ventures are launching micro-venture capital funds to diversify their revenue streams and tap into startup growth.
By advising and investing in startups, these banks aim to unlock value as company valuations grow. For example, IndigoEdge plans a $40-50 million fund targeting late-stage startups. This trend, seen globally, is growing in India, with banks ensuring legal disclosures to avoid conflicts of interest. Merisis' fund, launched in 2022, has already seen significant returns in startups like Beato and Eggoz.