Home / Business and Economy / Deeptech Funding Surges: VCs Write Bigger Checks in 2025
Deeptech Funding Surges: VCs Write Bigger Checks in 2025
24 Dec
Summary
- VCs increased deeptech investments in 2025, writing larger checks.
- Indian VC funds raised substantial capital, fueling deeptech growth.
- Government initiatives support deeptech R&D with significant funding.
Venture capital firms demonstrated a significant uptick in deeptech investments throughout 2025, fulfilling earlier commitments. While deal volume saw some caution, the capital deployed per investment increased, with investors favoring companies possessing proven product-market fit and lower technical risks.
India's venture capital ecosystem is currently robust, with major firms raising substantial new funds, such as Accel's $650 million and Nexus Venture Partners' $700 million. This financial strength is further bolstered by initiatives like the India Deep Tech Investment Alliance, launched in September by eight prominent VC and private equity firms from India and the U.S.
Supporting this growth, the Department of Science and Technology launched a Rs 1 lakh crore fund under its Research, Development, and Innovation Scheme to back private sector R&D. This governmental push, alongside investor interest in sectors like AI and semiconductors, signals a strong future for deeptech innovation beyond 2025.
