CHENNAI: A New Era for AI Startups

Together Fund is setting its sights on the future of artificial intelligence by planning to back around 25 AI startups through its second fund. With an average deal size ranging from $3 million to $5 million, the fund aims to support seed stage and series A startups that are pushing the boundaries of AI applications and infrastructure.

Manav Garg, co-founder and managing partner of Together Fund, shared insights into the fund's strategy and expectations. The $150 million fund is anticipated to be fully disbursed within 24 months, focusing on startups that are building solutions on top of foundational models and those working on the infrastructure layer, including agent automation and testing.

Focusing on Verticalisation and Domain Expertise

Garg emphasized the potential of AI startups with a focus on verticalisation and solving domain-specific problems to scale revenue much faster than their SaaS counterparts. He predicts that within the next three to seven years, around seven of their portfolio companies will achieve revenues of $100 million.

Building the Next Wave of AI Giants

Together Fund, founded by Garg and Girish Mathrubootham in 2021, initially concentrated on SaaS startups but has since expanded its focus to include AI-first startups. The fund has already backed 31 startups, with 16 of them being AI-first. Mathrubootham, also the founder and executive chairman of Freshworks, expressed his belief in the transformative power of AI and the fund's commitment to supporting bold AI founders who are reimagining the future.