Gold rush: What's driving venture funds to back next-gen deeptech accelerators?

Investing in India's deeptech startups isn't new; venture funds have been doing it for a while.

- Rwit Ghosh

Now, the startup ecosystem is seeing the rise of deeptech accelerators, where generalist funds help and handhold fledgling firms.

Global funds like Accel and Lightspeed Venture Partners have launched deeptech programmes in India in the last six months. The India Deeptech Alliance, which was formed in September last year, has partnered with the University of Chicago to steer IIT-affiliated early-stage deeptechs through a 10-week programme. Does this mean India’s deeptech ecosystem has turned the corner? Or are investors trying to secure early access to scarce frontier intellectual property? Mint explains.

Why are generalist venture funds launching deep-tech accelerators?

In the past couple of years, many deeptechs founded in the midand late-2010s have turned commercially viable and revenue-generating. In manufacturing, aerospace and defence, many companies are preparing for launch, witnessing an influx of customers, or have gone public.

Precision manufacturer Aequs went public last year, while deeptech manufacturer Sedemac’s initial public offering was approved by the markets regulator. Agnikul Cosmos and Skyroot Aerospace plan commercial rocket launches this year, while hyperspectral imaging company Pixxel has been taking more of its satellites into orbit. While not all fit a single definition of deeptech, they reflect a broader shift: hardware-heavy, R&D-intensive Indian startups are now reaching commercial milestones.