Investment Fund Established for Deeptech Startups
Fund Origins and Objectives Founded in 2017 by Vishesh Rajaram and Arjun Rao, Speciale Invest has set its sights on the burgeoning field of deeptech, which is attracting increasing interest from investors globally. Deeptech Roundtable and Policy Discussions A recent roundtable event underscored the growing momentum in the deeptech sector, with 35 startups and over 30 leading venture capital firms in attendance.
The Speciale Invest Growth Fund II has been launched with a focus on supporting deeptech startups, particularly those that have reached the growth stage of their development. The fund aims to invest in Series A and later stages, providing necessary capital to innovative companies at a critical point in their journey.
Fund Origins and Objectives
Founded in 2017 by Vishesh Rajaram and Arjun Rao, Speciale Invest has set its sights on the burgeoning field of deeptech, which is attracting increasing interest from investors globally. The fund's portfolio already includes notable companies such as Agnikul Cosmos and GalaxEye, highlighting its commitment to backing pioneers in the sector.
The investment period for Speciale Invest Growth Fund II is planned for the next decade. This long-term approach is designed to accommodate the often lengthy gestation periods that emerging technologies require before they can reach full market potential. By targeting Series A and subsequent funding rounds, the fund intends to nurture startups through crucial growth phases.
Deeptech Roundtable and Policy Discussions
A recent roundtable event underscored the growing momentum in the deeptech sector, with 35 startups and over 30 leading venture capital firms in attendance. The discussions highlighted several key policy areas that could enhance the sector's development, including the call for tax incentives specific to deeptech and the need for more flexible fund regulations.
Reforms in the Department of Scientific and Industrial Research (DSIR) registration norms were also requested, emphasizing the importance of R&D-linked benefits for startups. Companies like QpiAI, Nabhdrishti Aerospace, and EtherealX were present, sharing insights into the unique challenges faced by deeptech enterprises.
Government Support and Ecosystem Development
During the event, a commitment was made by Goyal to strengthen the deeptech ecosystem in India. This includes initiatives to scale domestic capital and foster innovation, thereby addressing some of the pressing challenges in the sector such as the lack of testing infrastructure and specialized talent.
In line with these efforts, the India Deep Tech Alliance was launched, aiming to bring together key stakeholders to support the development of frontier technologies. This alliance is expected to play a crucial role in aligning industry efforts with governmental support, ensuring a cohesive approach to nurturing deeptech innovation.
Challenges and Future Directions
Despite the promising outlook, deeptech startups continue to face significant hurdles. The long gestation periods associated with developing cutting-edge technologies require sustained investment and patience from both entrepreneurs and investors. Additionally, there are ongoing challenges related to scaling domestic capital, which necessitates a concerted effort to build a robust financial ecosystem.
Thirteen startups have already been selected to develop indigenous AI models, showcasing the potential for homegrown innovation in the deeptech arena. However, further efforts are needed to overcome infrastructure and talent shortages, ensuring that India can fully capitalize on its deeptech potential.
“Our emphasis is on harnessing innovation and scaling domestic capital to ensure that India remains at the forefront of deeptech advancements,” said a representative from the event.
As the Speciale Invest Growth Fund II embarks on its investment journey, the spotlight remains on how such initiatives can effectively drive the growth of deeptech startups, ultimately contributing to a vibrant and globally competitive technology landscape in India.