2 days ago
India Needs Patient, Accountable Capital for Deep-Tech Startups
Deep-tech companies work on difficult technologies such as semiconductors, quantum computing, biotechnology and space systems.
These companies may need many years before they earn meaningful revenue.
The article says they should not be judged like online shopping or software subscription companies.
India has created funding programs to give these companies more time to develop.
However, investors and experts must still follow clear rules.
Experts should disclose if they have investments or other relationships with a startup.
Some experts may need to step aside when their connections are significant.
The article says many risky investments will fail, and that failure can be part of discovering important technologies.
But the process for choosing investments should be transparent and accountable.
Deep-tech startups need longer timelines than conventional startups to develop technology and generate meaningful revenue.
India’s ₹1-lakh-crore Research, Development and Innovation scheme will support high-risk innovation over six years.
The Technology Development Board can offer collateral-free loans with tenures of up to 15 years.
Experts assessing startups should disclose relevant relationships, with recusal required for significant conflicts of interest.
The article argues that India should tolerate investment failures but not failures in evaluation and governance processes.
- Who
- The Indian government, deep-tech startups, investors, scientists and expert evaluation panels.
- What
- An argument for patient funding of deep-tech startups combined with stronger conflict-of-interest safeguards and documented investment processes.
- Where
- India.
- When
- Published August 31, 2026.
- Why
- Deep-tech companies require long development periods and involve high risks, but public and private capital must still be governed transparently.
Patient Capital
Process Guardrails
How startups should be judged
Patient Capital
Deep-tech startups should receive longer timelines because technologies such as semiconductors, quantum computing, biotechnology and space systems may take years to reach meaningful revenue.
Process Guardrails
Longer timelines should not remove the need for structured evaluation of the team, capital requirements, commercial opportunity and investment decision.
Role of connected experts
Patient Capital
Experts with knowledge of India’s small deep-tech ecosystem may be among the best people to identify promising startups, and their connections should not automatically disqualify them.
Process Guardrails
Those experts must disclose relevant relationships, recuse themselves when conflicts are significant, and face rotating panels or independent reviews where appropriate.
Interpreting failure
Patient Capital
Because deep-tech investments are high-risk, some failures are expected and do not necessarily show that the original investment decision was wrong.
Process Guardrails
Failure of a startup may be acceptable, but failure to document decisions or manage conflicts of interest is not.
Key facts
- Research and development scheme
- India’s Research, Development and Innovation scheme has a ₹1-lakh-crore allocation and is designed to finance high-risk, high-impact innovation over six years.
- Technology Development Board loans
- The Technology Development Board’s current window can provide collateral-free loans with repayment tenures of up to 15 years.
- Startup India Fund of Funds 2.0
- The fund has a ₹10,000-crore corpus, with deep-tech among its focus areas.
- Suggested disclosure
- Experts should disclose investments, advisory roles, mentorships, board positions and other material relationships with applicants.
- Suggested recusal
- Experts should be required to recuse themselves when their relationship with an applicant is significant.
- Evaluation structure
- Technical experts could assess the technology while investment professionals evaluate the team, capital needs and commercial opportunity.
- Process documentation
- Each investment should have a detailed process sheet and documented decisions to create an audit trail.
Sources
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