Deep tech's new capital

India’s technological landscape is bridging the investment gap needed to support high-innovation and long-gestation startups, reports Udisha Srivastav

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Indian Angel Network (IAN) recently committed ₹ 25 crore to D-Propulse Aerospace, an indigenous propulsion systems startup.

The investment aligns with IAN’s strategy to back companies in strategically important sectors and reflects a broader venture capital (VC) trend prioritising homegrown innovation and technological self-reliance.

As many as 47 homegrown deep-technology companies raised $997 million in January and February this year, up from $162 million across 57 firms in the same period last year. Companies raised $1.65 billion in 2025.

Deep tech is an umbrella term referring to startups founded on substantive scientific discoveries or meaningful engineering innovations that require significant R&D to commercialise. It is attracting investor interest in several sunrise sectors, including space, defence, semiconductors, biotechnology, energy security and transition, quantum technologies, robotics, and artificial intelligence (AI).

Deep tech investment is shifting, reinforced by both market opportunity and policy design. VC firms now sit on the investment committees of government-backed fund managers, including the Biotechnology Industry Research Assistance Council (BIRAC) and the Technology Development Board (TDB), nominated under the ₹ 1 trillion Research, Development and Innovation (RDI) fund.

Saurabh Srivastava, co founder of IAN Group, chairs TDB’s investment committee. Other VC representatives include Gopal Srinivasan of TVS Capital Funds and Debashish Bhattacharya of Lionstead Ventures. Startups approved by TDB and BIRAC must raise at least 50 per cent of their capital from private sources, establishing a co-investment pathway for venture funds. TDB and BIRAC have received ₹ 2,000 crore each to invest in deep-tech and biotech startups, respectively.