Mint Explainer: What’s driving VCs to launch deeptech accelerators?

Mint explains.In the past couple of years, many deeptechs founded in the mid- and late-2010s have turned commercially viable and revenue-generating. In manufacturing, aerospace and defence, many companies are preparing for launch, witnessing an influx of customers, or have gone public.Precision manufacturer Aequs went public last year, while deeptech manufacturer Sedemac’s initial public offering was approved by the markets regulator.

Agnikul Cosmos and Skyroot Aerospace plan commercial rocket launches this year, while hyperspectral imaging company Pixxel has been taking more of its satellites into orbit. While not all fit a single definition of deeptech, they reflect a broader shift: hardware-heavy, R&D-intensive Indian startups are now reaching commercial milestones.The rise of such startups has given Indian venture capital investors confidence that the sector is maturing.

This, in turn, has them hunting for startups that could be the next billion-dollar business. And an accelerator programme is a pathway to finding that company early.Accelerator programmes are usually best suited for companies that have developed a minimum viable product ready to be taken to market.

A programme, which can last anywhere form two days to six months, helps connect founders with industry experts and insiders. These connections help them understand the landscape where they’re building, what they’ll need to do to stand out, how to raise money, and even how to run a business.

Regular startups in an accelerator programme are usually tech-first businesses with high margins and easy scalability.However, in a deeptech accelerator, investors are fully aware that it has higher and patient capital requirements. Deeptech accelerators are often