The investment boom in deep tech start-ups, as seen in the post pandemic liquidity of 2022, may have come down a few notches amid the funding winter but is still higher than pre-Covid years, a new report shows.
Indian deep tech ecosystem has benefited by the bull markets of 2022 and the momentum is likely to be carried into 2025 thanks to sectors such as space, green hydrogen, quantum computing, generative AI and others, says the report titled ‘India’s Deep Tech Revolution’ by VC firm Speciale Invest and alternative investment firm Oister Global.
Total funding in deep tech grew almost 3x from $484 million in 2021 to $1,212 million in 2022 and then tapered down to $677 million in 2023, as per the report. Indicating increased risk appetite among investors, the average size of seed stage deep tech deals in India has been rising and touched $1.5 million in 2023. In contrast, globally, the average deal size is almost double at $2.9 million.
The report notes that India figures among the top ten markets for funding in deep tech globally but it still has a lot of ground to cover. Between 2016 and 2023, US deep tech start-ups have received almost 60x times more investment than Indian counterparts, Chinese deep start-ups have received 12x while start-ups in the UK got 4x more investment. Read more
Source: The Hindu Business Line