VCs spot hidden gems in research, engg

When Chennai-based space-tech startup Agnikul pitched to Artha Venture Fund in 2020, managing partner Anirudh Damani said it took only minutes to recognize the founders' deep domain expertise.

- Mansi Verma

"It was obvious they weren't theorizing. They understood propulsion because they had lived it, tested it, failed, and learned in real labs," said Damani. The venture capital firm wrote a small cheque in a $3 million seed round then.

Five years on, that technical depth has become a magnet for investors. Artha returned for Agnikul's Series B this April with about $3 million. In November, the startup raised another $17 million at a $500 million valuation, backed by Artha and other investors like Advenza Global Ltd, HDFC Bank, and 100X.VC.

"Our association with IIT Madras gave early backers confidence and a solid ecosystem," co-founder and CEO Srinath Ravichandran, told Mint.

Artha is not alone. Indian VCs firms are increasingly putting their money behind founders with deep domain expertise, PhD-level research credentials, and IIT lab spin-offs, rather than the traditional execution-first archetype.