NuVentures, a Bengaluru-based venture capital firm, has invested in Perplexity, an AI startup, through a secondary transaction.

The investment amount was not disclosed.

Perplexity, founded in 2022 and valued at around US$18 billion, counts SoftBank, Databricks, Nvidia, and Jeff Bezos among its backers.

NuVentures said the deal gives it access to the US AI startup ecosystem.

The firm recently launched a US$75 million fund for investments in the US and India. Its portfolio includes over 47 companies, such as Bigbasket and Acko.

.source-ref{font-size:0.85em;color:#666;display:block;margin-top:1em;}a.ask-tia-citation-link:hover{color:#11628d !important;background:#e9f6f5 !important;border-color:#11628d !important;text-decoration:none !important;}@media only screen and (min-width:768px){a.ask-tia-citation-link{font-size:11px !important;}}

🔗 Source: YourStory

🧠 Food for thought

1️⃣ Secondary transactions offer smaller VCs access to high-growth AI companies

NuVentures’ investment highlights how secondary markets have become crucial for smaller venture funds to access rapidly appreciating AI companies.

Perplexity’s valuation jumped from $520 million in January 2024 to approximately $18 billion by July 2025, creating substantial returns for early investors who may choose to sell portions of their holdings 1.

The company’s annual recurring revenue surged to over $150 million from approximately $35 million just a year ago, demonstrating the rapid scaling that makes secondary purchases attractive despite higher entry valuations 2.

For a smaller fund like NuVentures with its $75 million pool, secondary transactions provide a realistic path to invest in unicorns that have already completed multiple primary funding rounds totaling $1.5 billion 2.

This approach allows regional VCs to gain exposure to Silicon Valley’s high-growth AI companies without competing in the initial funding rounds dominated by larger institutional investors.

2️⃣ Mega-deals dominate AI funding, creating new access challenges

The concentration of AI investment in massive funding rounds is reshaping how venture capital flows to the sector.

Nearly one-third of all venture capital investment in Q2 2025 went to just 16 companies that raised rounds of $500 million or more, while AI startups captured 53% of global VC funding 3.

This concentration means that a small number of AI companies like Perplexity are absorbing disproportionate amounts of available capital, with the US capturing 64% of global VC funding in Q2 2025 4.

The trend creates a market where elite AI companies access enormous funding rounds while smaller AI startups face increased competition for remaining capital.

For international VCs like NuVentures, this concentration means that gaining exposure to the most valuable AI companies increasingly requires creative strategies like secondary purchases rather than traditional primary investment approaches.

Recent Perplexity developments

……