Novastar Partners Backs Pre-Seed Stage Focused VC Firm AJVC

Novastar Partners, an Indian investment firm, has made its first investment in India by becoming a limited partner in Aviral Bhatnagar's venture capital firm, A Junior VC (AJVC). Bhatnagar founded AJVC in 2024, a pre-seed focused investment company that raised its first fund of ₹200 Cr the previous year. Since its inception, AJVC has made 32 investments in early-stage startups like Iztri, Handy Panda, and Mindcase, typically investing ₹1.5 Cr for a 9% equity stake.

AJVC assists founders in refining their products, optimizing their hiring and people strategy, aiding in sales and marketing, and providing support in finance, legal, and compliance operations. Novastar, which is building a private equity fund-of-funds, plans to support AJVC and its portfolio companies by facilitating follow-on funding rounds, providing networking opportunities, and offering direct operational assistance.

Novastar's managing partner, Dhruv Jhunjhunwala, explained that Novastar was drawn to AJVC's tech-led sourcing infrastructure, investment strategy, and Bhatnagar's network in the early-stage investment ecosystem. Jhunjhunwala emphasized that a programmatic approach, such as building a broad portfolio of companies while maintaining selection discipline, can be an effective way to invest at the pre-seed stage.

Novastar, founded in 2025 by Jhunjhunwala, focuses on sectors like AI, consumer tech, financial services, healthcare, and deep tech. The firm aims to diversify its bets across the startup life cycle, allocating around 15% of its capital to early stage strategies, with most investments directed towards growth stage strategies and a smaller portion towards late stage strategies, including secondaries and continuation funds.

Jhunjhunwala did not disclose the amount of capital Novastar has raised or its future investment plans, stating that the company's focus is currently on building a strong portfolio and partnering with the right fund managers.