Archive · 5 Dec 2025
VCs Prefer Technologists in India's AI, Deep-Tech Wave
Indian venture capital firms are now focusing on investing in startups with founders who have deep technical knowledge and research backgrounds.
This shift is driven by the growing importance of AI and deep-tech sectors in India.
Companies like Agnikul, which specializes in space tech, have attracted significant investment due to their founders' expertise and the support of institutions like IIT Madras.
Investors believe that this trend will continue to grow, as more research-led startups emerge from premier institutions.
However, there are concerns about the ability of technically focused founders to handle business and marketing aspects effectively.
The ideal founding teams are those that combine deep technical expertise with strong business execution.
Indian VCs are increasingly investing in startups with founders who have deep technical expertise and research backgrounds.
Agnikul, a space-tech startup, raised $17 million at a $500 million valuation, backed by investors like Artha Venture Fund and HDFC Bank.
This shift is driven by the growing importance of AI and deep-tech sectors, with a projected $30 billion sector by 2030.
Investors believe that IP and research capabilities are becoming core differentiators for product companies.
There are concerns about the ability of technically focused founders to handle business and marketing aspects effectively.
- Who
- Indian venture capital firms and deep-tech startups
- What
- Shift towards investing in founders with deep technical expertise and research backgrounds
- When
- Recent years, with notable investments in 2024 and 2025
- Where
- India, particularly in sectors like space tech, AI, and climate tech
- Why
- Rising AI and deep-tech investments, government push for manufacturing, and the need for IP and research capabilities
- Startup
- Agnikul
- Founder
- Srinath Ravichandran
- Investors
- Artha Venture Fund, Advenza Global Ltd, HDFC Bank, 100X.VC
- Key Investors
- Artha, Avaana Capital, Fundamentum
- Emerging Sectors
- Space tech, materials science, EV systems, industrial automation, climate tech
- Institutional Support
- IISc, IITs, IIITs, BITS Pilani