India's DeepTech Fund Ignites Startup Boom

Aum Ventures has launched India Innovation Fund II, an $80 million (₹750 crore) venture capital fund focused on early-stage DeepTech and IP-led startups. The fund will invest in promising companies across artificial intelligence, SpaceTech, semiconductors, and defence, sectors identified as critical for national and global strategic advantage. This move signals strong investor confidence in India's burgeoning innovation landscape.

The launch of Fund II aligns with India's policy direction to strengthen strategic technology capabilities, as evidenced by an extension of startup recognition for deep tech companies to 20 years. Chetan Mehta, Founding Partner at Aum Ventures, highlighted India's "unique inflection point" due to converging policy support, talent, and capital, creating significant opportunities for DeepTech innovation.

This SEBI-registered fund will provide check sizes ranging from $750,000 to $2 million for initial investments, with follow-on capital available up to Series A/B stages. Approximately 25-30 portfolio companies are expected to be supported throughout the fund's lifecycle. Beneficiaries include pre-seed/seed stage founders, engineering-heavy startups with long development cycles, and those building globally scalable technologies.

Mehta noted that the current launch reflects a maturing DeepTech ecosystem in India, marked by enhanced government policy, increased private sector participation, improved research capabilities, and growing customer adoption of indigenous technologies. The fund prioritizes exceptional founders and innovative, globally competitive technologies, addressing challenges like commercialization gaps and attracting multidisciplinary talent.