Deep Tech funding: Top 7 VC firms investing in innovation

India has been a promising investment destination by being one of the world's fastest-growing economies. Now, the deep tech sector is sending ripples in the Indian startup ecosystem. So, if you are a deep tech startup that is looking for active funding opportunities, here is a curated list of the top 7 venture capital firms.

Deep tech industry in India

According to a Nasscom-Zinnov 2022 report, more than 3,000 deep tech startups in India are growing at over 53 per cent CAGR in the last decade. Another statistic by Forbes India states that deep tech startups account for 12% of the Indian startup ecosystem.

These numbers show a positive trend in the deep tech sector in India as more startups are joining the bandwagon. In September, the Indian government introduced The National Deep Tech Startup Policy (NDTSP) to foster innovation and solve technological challenges.

Top 7 venture capitalist firms that invest in deep tech

1) Sequoia India

Sequoia Capital India India is a well-known venture capital firm that generally invests in various stages from seed or early-stage startups to the growth phase in the technology sector. In fact, in 2019, Sequoia was the top VC firm that invested in India.

This year, Sequoia split into three entities: United States, India and Southeast Asia, and China. The Indian part of the firm has been rebranded as Peak XV Partners. They are currently managing $9.2 billion across 13 funds. A few notable startups in Peak XV Partners's portfolio include Zomato, Razorpay, Truecaller, CRED, Groww, Mamaearth, etc.

2) Blume Ventures

Founded in 2010 by Sanjay Nath and Karthik Reddy, Blume Ventures is an active VC firm headquartered in Mumbai. Although this VC firm is not completely focused on investing in the technology sector, they have supported multiple AI and deep tech startups.

According to their portfolio, Blume Ventures has funded more than 11 deep-tech startups including Ethereal Machines, Agara Labs, TartanSense, GreyOrange, etc. Overall, this VC firm seeks to invest in companies that bring transformational solutions to the table and is a strong advocate of deep tech.

3) Pi Ventures

Based out of Bengaluru, Pi Ventures is an early-stage venture fund founded in 2016 by Manish Singhal, and Umakant Soni. With an aim to invest in startups that use machine learning, artificial intelligence, and the Internet of Things (IoT).

Since its inception, Pi Ventures has backed more than 13 AI and ML-focused startups and some of them are AgniKul Cosmos, Locus, Niramai, SigTuple and more. According to a report by the business line, this VC firm is currently seeking to invest in 20-25 early-stage startups in the next 2-3 years and will focus mainly on AI and deep tech companies.

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4) Accel Ventures

Accel Ventures is a US-based early and growth-stage venture that supports startups across the globe. It is one of the most active VC funds in India and according to Crunchbase, it has made around 1954 investments. In 2017, they partnered with Pi Ventures and in 2022 it raised $40 million from Accel Ventures.

They have also funded a significant amount in Chennai-based AI startups Mad Street Den and SigTuple.

5) Chiratae Ventures

Formerly IDG Venture Capital, this VC firm focuses on tech sector entrepreneurs in India. Founded in 2006 by Sudhir Sethi and T. C. M. Sundaram, Chiratae Venturesinvests in early and growth-stage startups. Flipkart, Myntra, FirstCry, Cure.fit, Lenskart and SigTuple are some prominent companies that are backed by this venture fund.

6) Intel Capital India

Being the investment arm of Intel Corporation that participates in mergers, acquisitions, and global investments, Intel Capital has supported more than 1307 startups. In 2020, they funded around $132 million across 13 startups that focused on artificial intelligence, Integrated circuit (IC ) design and autonomous computing.

7) Speciale Invest

Speciale Invest is an early-stage venture capital firm based out of Bengaluru that supports deep-tech startups. Founded in 2017 by Arjun Rao and Vishesh Rajaram, this VC firm looks for companies that build innovative solutions.

In 2023, this VC firm announced a Rs 200 crore growth fund to follow up on their investments. So far they have funded more than 30 tech startups including AgniKul Cosmos, Astrogate Labs, Fego.ai, Scapic, etc.

Get ready to dive into the exciting world of Indian deep tech investments. If you're a deep tech startup, these top venture capital firms are your gateway to success.