What Goes Inside Investor's Mind? Avaana Capital’s Anjali Bansal Tells at SMK 2025

India’s entrepreneurial pulse was at an all-time high at Startup Mahakumbh 2025, the country’s largest startup gathering, where industry leaders, founders, and investors came together to celebrate innovation, collaboration, and the future of Indian startups. Among them was Anjali Bansal, Founding Partner of Avaana Climate and Sustainability Fund, who called the event “large, buzzy and filled with cross-pollination of ideas.”

Reflecting on the scale and energy of the event, Bansal noted that this year’s edition felt “3x to 10x larger than last year.” She attributed this momentum to continued government support and the entrepreneurial vision seeded in 2016 with the launch of the Startup India initiative by the Hon’ble Prime Minister.

“Since then, we’ve been on an accelerated entrepreneurship journey in India,” she said.

The ecosystem’s strength, according to Bansal, lies in its collaborative spirit. She emphasized how government bodies like DPIIT and industry stakeholders have come together to build a unified platform.

“This is an ecosystem participation—very collaborative—and it’s exciting to see the conversations, intersections, and innovation taking place,” she added.

Climate Tech Startups at Startup Mahakumbh

Bansal, whose firm is a prominent advocate and early-stage investor in climate tech, believes that India is on the cusp of a new wave of entrepreneurship in sustainability. She shared that many young founders she met at the event expressed being deeply inspired by the stories and experiences of fellow entrepreneurs.

“They are energized by the ecosystem and the visible support from the policy establishment. India’s policy leadership now recognizes startups as a core engine of economic and social growth,” she said.

She stressed the need to democratize startup growth beyond traditional metros.

“We must take startups to tier 2 and tier 3 India so that youth across the country are encouraged to innovate and build enterprises that can help India grow into a $10-20 trillion economy,” Bansal said.

Climate Tech: A Cross-Sectoral Opportunity

When asked about the opportunities in climate-focused investing, especially in light of the recent call for more private participation by policymakers, Bansal underscored why Avaana Capital launched the country’s first institutional early-stage climate fund.

“For us, climate is not just a label—it’s a basket of industries. From energy supply chains to advanced materials, food security, and industrial decarbonization, these are all integral components of climate tech,” she explained.

Bansal believes that transformational innovation lies at the intersection of these sectors. “We invest in scalable businesses that will create long-term value while solving critical challenges related to sustainability,” she said.

Inside an Investor’s Mind

On what drives investment decisions at Avaana, Bansal highlighted three core aspects: innovation, team quality, and business scalability.

“We look for transformational capacity. Is the innovation defensible? Does the team have a competitive moat? And is the business model scalable to create real impact and value?” she concluded.