3 weeks ago
India's venture capital playbook rewrites itself with new generation
A long time ago, when computers were rare in India, grown-ups who invest money in new companies — called venture capitalists — would copy ideas that were already popular in other countries, like online shopping or taxi apps.
Now, a new group of younger investors has grown up.
They saw India change a lot, from almost no computers to almost everyone having a smartphone.
These new investors want to build brand-new ideas in India that nobody has tried before, like satellites, clever computer programs called artificial intelligence, and advanced machines.
They are also willing to give money to smart people who did not go to famous Indian schools.
The number of these investment firms has grown from 30 to 250 in just ten years.
In 2025, about ten billion dollars was invested in Indian startups.
The money is helping India try to become a much bigger and richer economy.
India's VC industry is shifting from replicating global models like Uber and Amazon to backing original, India-first innovations.
Capital is flowing toward AI, deeptech, advanced manufacturing and strategic technologies such as quantum computing and autonomous things.
India's VC-only membership grew nearly eightfold from 30 to 250 firms over the past decade, with close to 45% being micro VCs.
Total VC investment in India held steady at about $10 billion in 2025, with AI and deep tech outperforming.
Millennial investors and founders-turned-investors are broadening who gets funded, moving beyond elite IIT/IIM pedigree filters.
- Who
- A new generation of millennial venture capitalists and founders-turned-investors, including Pranav Pai of 3one4 Capital, Aditya Singh of All in Capital, Sathya Nellore Sampat of BoldCap Ventures and Arjun Vaidya of V3 Ventures.
- What
- India's venture capital playbook is shifting from replicating proven global models to backing original AI, deeptech and strategic technologies built in India.
- Where
- India
- When
- Over the past decade, with 2025 marked by steady VC investment of about $10 billion.
- Why
- Young investors who witnessed India's digital transformation want to build original technologies and help India move from a $4-trillion to a $10-trillion economy.
New generation of VCs
Traditional VC playbook
India-first innovation vs global replication
New generation of VCs
Back original technologies and business models built in India without a global template.
Traditional VC playbook
Replicate proven global models like Uber and Amazon, adapting them to India's rapidly expanding digital market.
Broader founder backgrounds vs elite pedigree
New generation of VCs
Fund non-IIT and younger founders; a non-IIT student getting funded was previously 'borderline impossible'.
Traditional VC playbook
Prefer founders with elite IIT/IIM or global university credentials and strong professional pedigrees at multinationals.
Key facts
- Total VC investment in India (2025)
- About $10 billion, with AI and deeptech outperforming
- IVCA VC-firm membership
- Grew from 30 to 250 firms in a decade; close to 45% are micro VCs
- First VC boom
- Gained momentum after 2008-09, helping create Flipkart and Zomato
- Funding focus
- AI, deeptech, advanced manufacturing, quantum computing, augmented analytics and autonomous things
- India economic ambition
- Move from a $4-trillion to a $10-trillion economy over the coming decade
- Micro VC role
- Bridging the 'Valley of Death' for startups in GenAI, climate tech, deeptech and consumer platforms
Quotes
Aditya Singh
Co‑founder of All in Capital and former Stride Ventures Principal
“"We have reached a phase where the first generation of internet companies has gone through a full cycle. Some have sold, some are scaling, some are IPO‑ing."”
businesstoday.in
“"We have grown up seeing the scarcity that India has lived with since independence. And then, within our own lifetimes, we have seen a remarkable shift."”
businesstoday.in







