VCs Discover Deeptech’s Secret Sauce: Patience, Engineering, and Scale

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There’s a real shift happening in how venture capitalists think about deeptech startups. Not long ago, these companies were seen as risky bets—more like research labs than real businesses. Now, VCs are treating them as serious, scalable companies built on solid engineering.

Key Highlights:

Investors are no longer just looking for quick wins. They’re willing to wait longer for deeptech startups to hit important milestones, like getting a product ready for the market or proving they can manufacture at scale.
Recent success stories, like the big returns from satellite startup Pixxel, are showing that patience in this sector can really pay off.
Deeptech companies are now judged on their ability to go from pilot projects to full-scale operations and to build strong intellectual property. It’s not just about user numbers or early revenue anymore.
Funding rounds are getting bigger, too. Investors are putting more money into deeptech, especially in fields like defense, artificial intelligence, and quantum computing.

The Indian government is helping out as well, with new funds and support from organizations like ISRO and DRDO. This is making it a bit easier for startups to grow and for investors to see a clear path to exit.

Of course, there are still challenges, especially when it comes to mergers and acquisitions. Regulations and capital requirements can slow things down, but interest from global buyers is growing.

The biggest change is in mindset: deeptech isn’t just a wild gamble anymore. For VCs, it’s about backing strong engineering and being willing to play the long game.

Source: Businessworld, Economic Times, BCG