Top 5 Active Private Equity/Venture Capital Firms in Nepal | Best VC Funds"

Venture Capital Firms (VC) is a financial entity that specializes in providing funding and support to early-stage and high-potential startups with the aim of nurturing their growth and success. Venture capital firms typically manage pooled funds from institutional investors, high-net-worth individuals, and corporations, and invest these funds in promising ventures in exchange for equity ownership. Beyond funding, VC firms often contribute strategic guidance, industry expertise, and valuable networks to help startups navigate challenges and achieve scalability.

Venture capital firms actively seek out startups that demonstrate high growth potential, disruptive technologies, or unique market solutions. The investment process typically involves multiple rounds, with early-stage funding, such as seed and Series A, focusing on product development and market validation, while later-stage funding rounds support scaling and market expansion.

In Nepal, the venture capital landscape has been gaining momentum, with several firms contributing to the growth of the startup ecosystem. By introducing licence for Specialised Investment Fund (SIF) in 2017, Securities Board of Nepal (SEBON) provides a regulatory framework for PE/VC and hedge funds in Nepal. As of now, there are more than 12 investment firms operating in the PE/VC space in Nepal. Some of them are registered under the Companies Act, some at the Securities Board of Nepal (SEBON) and few of them are Development Finance Institution (DFI)-backed funds.

Here’s a list of top five active private equity/venture capital firms in Nepal playing a pivotal role in fostering innovation and entrepreneurship:

Best Venture Capital Firms in Nepal

1. Dolma Impact Fund

2. Business Oxygen (BO2)

3. Team Ventures

4. True North Associates

5. Global Equity Fund

Dolma Impact Fund

Dolma Impact Fund was established in September 2014 under Dolma Fund Management. As an impact fund, Dolma invests in companies that contribute to Nepal’s Sustainable Development Goals across TMT, healthcare and renewable energy sectors and through quality, gender-balanced employment. As of now, Dolma Fund Management operates as Dolma Impact Fund I and Dolma Impact Fund II holding a total final closing of $ 108.56 Million.

Some of the companies funded by Dolma Impact Fund in Nepal are Foodmandu, Worldlink, Fusemachines Inc, Upaya City Cargo, Rhododendron Biotech, CloudFactory Group, Sastodeal, Swet Ganga Hydropower, and others. Dolma’s portfolio includes mainly companies from sectors like renewable energy, AI and E-Commerce firms, pharmaceutical manufacturing and medical care.

Business Oxygen (BO2)

Business Oxygen Private Limited (BO2) is Nepal’s first private-equity fund that has a climate focus. It provides risk capital financing with advisory support to help entrepreneurs running Small and Medium Enterprises (SMEs) to scale up their operations. This fund typically Invests from US $500,000 to US $ 1,000,000 with No collateral required and No interest to be paid. The main impact it wants to create through its funding is creation of new jobs, elimination of child labor, adherence to government standards and climate friendly investment.

Business Oxygen has invested in multiple companies and has successfully exited from four of them. Some of the companies BO2 has invested in are Fusemachines Nepal, Genese Solution, Assabet Technologies, Rojgari Services, BAKAS Renewable Energy, Dalle Restaurant, Saral Urja and others. Business Oxygen has successfully exited from some of their investments like Godawari International, Le Sherpa, Shanti Engineering, and The Lakeside Retreat.

Team Ventures

Team Ventures is an alternative investment firm in Kathmandu, Nepal, promoted by a dynamic group of business people with experience across multiple sectors. It aims to establish itself as a prominent alternative capital provider, dedicated to fostering entrepreneurial growth and optimizing value for investors through effective short and long-term capital allocation strategies.

Some of the companies funded by Team Ventures are Foodmandu, Nepal Warehousing Company, Pashupati Renewables, White Lotus Motors and Wiseyak. Team Ventures has already partially exited with its investment from Foodmandu in 2023. This partial exit resulted in 2x returns for Team Ventures.

True North Associates

True North Associates is a private equity and venture capital firm contributing to entrepreneurial development and economic growth in Nepal by helping businesses become more structured, marketable, profitable, and sustainable. They invest in companies with disruptive business models that aims to create new market, implement innovation in business processes, and have the potential to rapidly expand and scale. Their focus is help firms grow to be leading companies in their sectors within 5-7 years.

Some of the companies that True North Associates have invested in are ACT 360, Alpine Import & Export, Foodmandu, Incessant Rain Studios, Sajilo Sewa and Snowball Capital.

Global Equity Fund

Global Equity Fund Private Limited (GEF) is a private equity company incorporated as a private limited company in 2019. It’s a versatile impact fund that provides capital to small and medium sized enterprises which are at early stage, expansion, and growth stages. Currently, Global Equity Fund provides advisory service of about USD 35 million worth of portfolio in diversified sectors and is backed by by Prime Life Insurance, Everest Insurance and other.

Some of the companies that Global Equity Fund have invested in are Bhrikuti Grid Solar Project and others.

Other Private Equity/Venture Capital Firms In Nepal

1. Aadhyanta

2. Safal Ventures

3. Kriti Venture Fund

4. Tele Venture Pvt Ltd

5. One to Watch

Conclusion

Private Equity and Venture Capital Firms in Nepal plays a pivotal role in fostering entrepreneurial growth and innovation by providing crucial financial support to emerging businesses. These firms contribute to the development of a robust ecosystem by injecting capital into promising ventures, driving job creation and economic expansion. As Nepal’s economy continues to evolve, the presence of dynamic private equity and venture capital entities serves as a catalyst for sustainable business development and positions the country on a trajectory towards long-term economic prosperity.