What are deep tech ventures?
Deep Tech encompasses groundbreaking ideas rooted in science and engineering, tackling major global challenges. These innovations stem from fundamental research with specific commercial applications. Examples include space tech startups, gene therapy techniques and green hydrogen ventures. Deep tech spans Artificial Intelligence (AI), cybersecurity, clean energy, manufacturing, advanced computing, mobility, agritech and infrastructure. Countries with a highly skilled workforce, and robust research and development capabilities lead in deep tech innovation.
Where does India stand in deep tech?
The Indian startup ecosystem has traditionally focused on consumer and internet ventures like e-commerce and digital payments. However, a new playbook is emerging for deep tech startups, according to a report titled ‘India’s Deep Tech Revolution’, by venture firms Speciale Invest and Oister Global. Deep tech is attracting more capital, with investors like Peak XV, Blume Ventures, and Pi Ventures betting on innovations in cell manufacturing, green hydrogen, space and manufacturing. Globally, the US leads in deep tech startups, followed by China, with India ranking among the top 10.
How is funding for deep ventures changing in India?
Funding surged from $36 million in 2016 to $677 million in 2023. The Indian deep tech sector ranks ninth among well-funded countries globally that include Israel, Japan, Sweden, Germany and the US. However, the funding gap is vast, with Chinese startups receiving 12x and UK startups 4x more capital than their Indian counterparts.
Which areas have seen rapid growth in India?
Space tech startups rocketed from just 1 in 2014 to 190 in 2024, including Agnikul, Skyroot, Pixxel, GalaxEye and Digantara. In biotech, the landscape transformed from 50 startups in 2015 to nearly 6,000 by 2024. By Q3 2023, over 70 GenAI startups had raised more than $700 million from around 80 Indian institutional investors. Climate tech innovations are leading the charge in renewable energy and sustainability. Biotechnology is rapidly growing, driven by advancements in agri-tech, etc.
What are the likely challenges?
Building a supportive ecosystem involving academia, government, investors and companies is essential for success. Founders should focus on developing strong intellectual property and skilled teams. Time to market is slow and building scalable models is not easy. Investors should provide strategic support while large companies should facilitate startup market entry. Government can increase R&D funding, strengthen IP protection and streamline regulation to become self-reliant in critical areas.
#Mint #Primer #India #inroads #deep #tech
#Mint #Primer #India #inroads #deep #tech