Deep-tech startups must explore alternative funding options, says VC report
Speciale Invest.
The deep tech startups, however, need to consider alternative funding such as venture debt, asset financing, and project financing during their initial stages to address the science risk, the firm's founding partner Vishesh Rajaram told ET. Speciale has been investing in seed-stage startups, and GalaxEye Space, Agnikul Cosmos, ePlane Company, Uravu Labs and CynLr are some of the investee startups.
The VC firm’s report titled 'India's Deep Tech Revolution' on the sector, which is slated for release on Thursday and accessed by ET, highlights that the global market share of funding in Indian deep tech startups (1.30%) is significantly lower than the overall funding available to Indian tech startups (3.86%) which needs to be encouraged. It also added that back home, Indian corporations are still warming up to the idea of innovation through deep-tech startups and are yet to see an acquisition of a deep-tech startup.
Sectors such as space, semiconductors, energy, health, and advanced manufacturing are all poised for substantial growth, the report said. “Defense and allied manufacturing will also see more action, driven by India's need for self-reliance,” Rajaram said, while adding that state and central governments have invested heavily in infrastructure and grants, enabling startups to gestate longer without diluting their equity.
“Programmes like the Indian Quantum Mission and semiconductor initiatives lower the cost of capital and encourage innovation. However, we need more such policies across
