Why public capital isn’t enough to save India’s deeptech
Can government funds derisk deeptech enough to make private capital comfortable in India? Partly. The state is well placed to absorb technology risk. It is far less able to remove the two risks that actually keep fund managers awake: time and exit. Unless policy addresses those, India will get plenty of capital without much conviction behind it.
Via YourStory
Start with the momentum, which is real. India’s AI and deep tech investment reached $2.1 bn across 289 deals in 2025, and deep tech share of total VC – PE activity has climbed to roughly 15%, up from 4% in 2016. The 2026 numbers look even better at first glance through August, Indian deeptech companies raised $2.22 billion across 179 rounds against $861 million across 287 rounds in the same period last year.
Look closer, though. Funding rose about 2.6…
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