Deeptech seeing gap in growth capital, lack of domestic money

OVER THE PAST few years, funding for climate-tech has remained a small fraction of overall startup investments.

- AYANTI BERA

OVER THE PAST few years, funding for climate-tech has remained a small fraction of overall startup investments. Moreover, most of this funding has been directed toward early-stage companies, creating a gap in growth capital for startups looking to scale.

Less than 3% of startups have been able to reach Series B or beyond funding levels in India's climate tech ecosystem, according to a report by IIMA Ventures and Japan's MUFG Bank released last year.

"There is a gap in growth capital for deeptech startups, while domestic money is also not as available. We are hoping that the new fund of funds that is being set up by the government will propel the next cycle of deeptech funding," said Anjali Bansal, founding partner, Avaana Capital.