In a dynamic landscape where innovation intersects with technology, India has witnessed a remarkable surge in deep science tech investments over the past decade. According to the latest report by VC firm Ankur Capital titled ‘The India Deep Science Tech Report,’ investments in this sector have more than doubled in the last three years, surpassing $1 billion during the 2021-2023 period. This exponential growth trajectory is projected to escalate further, potentially exceeding $10 billion by 2029.
The report sheds light on the driving forces behind this unprecedented growth. Firstly, there has been a notable increase in seed-stage investments, indicating growing confidence and interest in deep science tech ventures. Secondly, growth-stage investments have gained momentum, particularly evident in the transition of first-generation biotech companies towards Series A and beyond.
AI and biotechnology emerge as the frontrunners in both funding and innovation within India’s deep science tech ecosystem. Remarkably, around 80% of total deep-tech investments since 2010 have been directed towards AI and biotech firms. This underscores the pivotal role these sectors play in shaping the technological landscape of the country.
The report highlights a significant trend: while the number of investments has been growing steadily, the number of investment rounds exceeding $5 million has been growing exponentially, doubling every three years. With the current global deep tech market size estimated at over $300 billion, India’s deep science tech sector holds immense potential for growth and expansion.
Despite the dominance of AI and biotechnology, the report also acknowledges the evolving nature of investments in these fields. While Indian AI companies have experienced substantial follow-on funding in recent years, fresh investments in AI deep science have seen a slight slowdown. The landscape is further nuanced by the presence of large rounds, such as those witnessed by Grey Orange, contributing significantly to follow-on funding figures.
Looking ahead, Dr. Ezhil Subbian, co-founder of Bengaluru-based String Bio, expresses optimism about the future of biotech start-ups in India. String Bio, a synthetic biology start-up pioneering the conversion of greenhouse gases into biological products, stands as a testament to the transformative potential of deep science tech ventures in addressing global challenges.
The influx of capital over the past decade paints a promising picture for biotech start-ups, paving the way for groundbreaking innovations and sustainable solutions. As India’s deep science tech ecosystem continues to evolve, fueled by innovation and investment, the journey towards technological excellence and societal impact enters an exciting new phase.
In conclusion, the burgeoning deep science tech sector in India exemplifies the convergence of innovation, investment, and optimism, laying the groundwork for a future defined by transformative technological advancements and societal progress.
