Key points:
– Indian origin-led early stage VC firm Countdown Capital, led by Jai Malik, is set to shut down by the end of March.
– The firm will complete pending investments, return capital, cancel uncalled commitments, and permanently cease operations, while still managing current assets.
– Malik cites the funding winter as the reason for the closure, stating that larger, multi-stage venture firms are better positioned to generate strong returns on industrial startups.
– The firm has backed aerospace and defense startups such as K2 Space, Hadrian, and Galvanick.
Summary:
Indian-origin entrepreneur Jai Malik’s early-stage venture capital firm, Countdown Capital, is set to shut down amid the funding winter. The firm will complete its pending investments, return capital, cancel commitments, and permanently cease operations, while still managing its current assets. Malik decided to close the fund as he believes that industrial startups are not getting adequate funding and that larger, multi-stage venture firms are better positioned to generate strong returns in this sector. Countdown Capital has backed several aerospace and defense startups, including K2 Space, Hadrian, and Galvanick. Malik did not comment on the report, but he stated in his annual letter that new investments are unlikely to yield strong returns. He believes that small, early-stage funds, particularly sector-focused ones, are not profitable enough in exploiting investment opportunities. The firm’s second fund, worth $15 million, was announced in September 2022, and its first fund was $3 million.
