Generalist VCs back in, but specialists steer deeptechs

The focus on deeptech comes at a time when the US and China are tussling for tech dominance

- Rwit Ghosh

Generalist venture capital funds are finally waking up to deeptech, unlocking a larger capital pool for the sector. Their entry is prompting specialist funds to move beyond early-stage bets and make growth-stage investments, helping startups bridge the gap to commercialization.

Funds like Peak XV Partners, Accel, and Elevation Capital are now increasingly focusing on deeptech. Peak XV has already made some investments in the sector this year, which are currently in stealth. Accel has signed four deals so far, ranging from aerospace to advanced manufacturing across seed, and Series A and B investments.

These companies have collectively raised $63 million from Accel and other investors. The global firm's investments in deeptech this year include a $3 million seed investment in micro gas turbine firm Nabhdrishti Aerospace. Accel signed $10 million Series A rounds with electric vertical takeoff and landing (eVTOL) maker Sarla Aviation and composites manufacturer Fabheads. The firm led a $40 million Series B round for chemicals maker Scimplify.