The Indian Venture and Alternate Capital Association (IVCA), India’s apex industry body for alternative assets, successfully hosted the IVCA Circles – Bangalore Edition on 12 November 2025, bringing together leaders from venture capital, government, and frontier-tech entrepreneurship to discuss how India can unlock its deep-tech potential through innovation, policy, and long-term capital.

Held in partnership with the Department of Electronics, Information Technology and Biotechnology, Government of Karnataka, and supported by Capital-A, Peak XV Partners, and WestBridge Capital, with IN-SPACe as Knowledge Partner, the forum explored strategies to strengthen India’s deep-tech ecosystem — from research commercialisation to patient-capital mobilisation.

Investors highlight the need for patient capital and government partnership

Manish Kheterpal, Co-founder & Managing Partner, WaterBridge Ventures, and Co-Chair, IVCA VC Council, noted: “Deep-tech investing in India is often misunderstood. The real opportunity lies in identifying scalable innovations early, supporting them through the long development cycles, and thinking strategically about exits. Success will come when investors, founders, academia and the government work together to turn research into real-world impact. SpaceX, Anduril and Palantir have 60–90% of their revenue coming from the US government. Similarly, if we want to create large companies with Indian sovereignty, the government must also partner commercially with many deep-tech companies.”

Siddarth Pai, Founding Partner, CFO & ESG Officer, 3one4 Capital, and Co-Chair, IVCA Regulatory Affairs Committee, added: “The seeds of the Indian DeepTech revolution, like its IT revolution, are in Bengaluru. Bengaluru's collegial milieu and progressive government policies have allowed it to attract and retain the best minds from across the country. Every VC in India has a Bangalore outpost in order to be closer to quality assets.

India's DeepTech moment is the convergence of three different factors — capital, talent, and policy. Each feeds into the other to create a virtuous cycle. Startup India's tremendous gains have given confidence to entrepreneurs and investors to make even more audacious investments.

The announcement of the RDI Fund will be a nucleus around which capital formation occurs. This is expected to galvanise over ₹4 lakh crore of additional capital for DeepTech in India.

As an investor organisation, IVCA has always been at the forefront of championing reform and capital for DeepTech companies. Dedicated working groups and funds have worked hard with the government to create frameworks and avenues to undertake this civilisational challenge.”

Also Read: Lavni Ventures Marks First Close of Early-Stage Deep-Tech Impact Fund

India’s Deep Tech Decade: Converting research into scalable enterprise

In a fireside chat with Rajan Anandan, Managing Director, Peak XV Partners & Surge, and Co-Chair, IVCA VC Council, Shri Priyank Kharge, Hon’ble Minister for Electronics, IT, Biotechnology and Rural Development & Panchayat Raj, Government of Karnataka, emphasised the state’s role in fostering innovation and talent that fuels India’s broader tech ambitions.

“Karnataka has always been at the forefront of innovation, and as we look ahead, we are entering the Deep Tech Decade for the state. To facilitate this, we’re investing not just in start-ups but in the entire value chain that makes start-ups into unicorns — from research and skilling to incubation and acceleration,” said the Minister.

He further added, “Our goal is to build globally employable talent, empower entrepreneurs beyond Bengaluru, and enable the next generation of deep-tech solutions that will define India’s future.”

Deep-tech capital formation gaining strength

India’s deep-tech sector continues to attract growing investor interest, supported by alternate capital and progressive policy initiatives. Funding in the sector has increased from $103 million in 2019 to $1.27 billion in 2023, before stabilising at $709 million in 2024. The segment now accounts for over 13% of India’s $11-billion venture-capital ecosystem, underscoring the rising conviction in frontier-technology innovation.

Over 3,600 deep-tech start-ups spanning semiconductors, quantum computing, biotechnology, clean energy, materials science, and space technology have collectively raised more than ₹34,000 crore since 2020. Corporate venture arms and institutional investors have executed 60+ deep-tech transactions since 2022, making up nearly one-third of India’s R&D-driven deals.