Boundary Holding was founded by Rajat Khare, based in Luxembourg. Over five years ago, Boundary Holding made its first investment in Cynapse Private Limited, and has recently announced an exit from this investment. Cynapse is an AI-powered video intelligence company located in the USA and has a regional office in Singapore. This exit allows Boundary Holding to make new investments in breakthrough innovations and is also a stellar financial decision.
Boundary Holding to Scaled New Heights
Most likely, Boundary Holding’s exit from Cynapse was most rewarding in the firm’s investment objectives cycle. The source indicated that the exit exceeded the capital expectations by multiples. This tremendous success allows Boundary Holding to focus investments in new pioneered tech such as autonomous systems, edge computing, advanced sensing, advanced imaging, AI automation, and quantum tech. Every single tech aligns with that of the firm’s philosophy—investing in breakthroughs that will shape modern-day industrial revolution.
From Innovation to Impact: The Cynapse Journey
Cynapse, founded in 2016, has built a reputation as a leader in AI-based video intelligence. The company developed a flagship platform that uses patented computer vision and generative AI to process close to 1 million hours of video a month. Its flexible deployment across edge, on-premise, and cloud environments is a testament to its adaptability across a multitude of use cases.
The system offers natural language search, anomaly detection, real-time monitoring, and event summarization features, addressing critical needs in transit infrastructure, airports, ports, and smart cities. Given these diverse capabilities, Cynapse delivers optimal value to commercial enterprises as well as public safety use cases.
Why Boundary Holding Invested in Cynapse
When Boundary Holding first invested in Cynapse, its decision was based on the company’s robust IP and market readiness in critical infrastructure, a highly commercially viable “dual use” domain with high public safety stakes.
Because of its Vision AI models and their ability to spot violations with more than 95% accuracy, Cynapse was able to excel in practical utility. Other partners in the industry were able to use the Insights AI Vision models to gain access to real-time safety data. These models helped to avoid operational safety incidents in real-time, offering safety and compliance benefits to partners and their end users.
Once the exit was completed, Rajat Khare said the exit was mutual and ‘tactical’.
“It was our privilege to accompany Cynapse during this period of its journey and to help it scale its innovation,” said Khare. “Now that our investment objectives have been prudently fulfilled, the exit is a milestone in this journey and not an endpoint."
“It was our privilege to accompany Cynapse during this period of its journey and to help it scale its innovation,” said Khare. “Now that our investment objectives have been prudently fulfilled, the exit is a milestone in this journey and not an endpoint."
Cynapse’s Exceptional Growth During Boundary’s Tenure
The collaboration between Boundary Holding and Cynapse was extremely beneficial. For the time period of 2021 to 2024, Cynapse was able to achieve a CAGR of nearly 200%. This was a sign of exponential growth for the company. During that period, the company was able to greatly expand its presence in Asia and obtain enterprise and government contracts outside of the region, and in other parts of the globe.
In 2024, Cynapse launched cyVisionGPT, a new generative A.I. upgrade to their platform. This feature included advanced vision-language models (VLMs) and A.I. tools for spatiotemporal analysis, scene interpretation, report generation with natural language, and OCR with scene video analysis and report generation.
This advancement in technology fulfilled a company milestone and further complemented the automating advanced analytics capabilities of A.I. toward the intelligent analytics trend.
Solving the Global Video Data Challenge
One of the biggest unsolved issues in the world is processing the enormous video data volumes created by surveillance cameras, public infrastructure, and commercial buildings - and often in petabytes a month.
Cynapse’s A.I. video intelligence system is specifically designed to solve this problem by automating video data the processing, and the time consuming, error prone, and real-time lacking surveillance, and analysis. Automated Data Processing, real-time anomaly detection, and actionable reporting solve the problem.
Cynapse has become a fundamental partner for cities and enterprises wanting to improve and integrate the functions of operational safety, compliance, and efficiency all because of the ability to convert basic video data into useful actionable insight.
Boundary Holding’s Exit from Cynapse and its Result to the Deep Tech Sector in Europe
The exit from Cynapse demonstrates a new tendency of European deep-tech VC firms to cycle quickly into new investments and deploy new capital into rapidly emerging frontier technologies.
Boundary Holding’s deep-tech ecosystem innovative recycling of new capital to sustain new technological adaptation at the portfolio company level and sustain portfolio value/capital growth.
Boundary Holding is a pioneer VC firm in the ecosystem because it champions game changing technological innovations and at the same time drives value portfolio growth within the enterprise’s ecosystem.
Boundary Holding Advance in March 2025
Boundary Holding’s exit from With the Grid marked yet another successful exit from With the Grid in March 2025. With the Grid has a focus on the management and monitoring of distributed energy networks like energy grids, substations, transformers, and batteries.
With the Grid has advanced monitoring and failure prevention systems for energy infrastructure and predictive maintenance systems because it incorporates advanced data analytics and IoT sensor-based systems.
Boundary’s exit from this engagement yielded a multiple on invested capital (MOIC) of 2.0x, with durations three to six years. This translates to internal rates of return (IRRs) of 26% and 14%, demonstrating the firm’s ability to generate value.
Looking Ahead: The Next Wave of Deep-Tech Investments
In line with these recent exits, Boundary Holding is poised to pursue investments in new deep-tech industries, The firm’s targeted verticals: autonomous systems, quantum computing, advanced imaging, and AI-powered decision-making, represent some of the largest and most rapidly evolving technologies in the world.
Each of these verticals can solve some of the world’s most pressing problems, including energy use and climate change, smart mobility, and automated systems for defense.
Boundary Holding that continues to be led by Rajat Khare, is the “long game.” Innovation has to pay and must improve humanity, not just change the world.
Conclusion
Cynapse’s exit for Boundary Holding isn’t just a financial achievement; it’s the firm’s continued commitment to being innovative, flexible, and impactful.
For over five years, the strategic insight of Boundary Holding transformed Cynapse, an AI startup, into a global leader in technology. Accomplishing a successful exit and demonstrating the reinvestment strategy showcases Rajat Khare’s ability to marry strategy and execution by leveraging cutting-edge technologies into viable, transformative businesses.
Investing in new technology focuses on deep-tech innovations that is now setting new standards in the global landscape for venture capital. Boundary Holding demonstrates that in technology, a well put together strategy to vision and investment.
Reference Link: https://nl.mashable.com/tech-2/12091/rajat-khares-vc-firm-boundary-holding-eyes-novel-deep-tech-investments-after-its-exit-from-cynapse