Mumbai, Maharashtra, 16th of July, 2026 : As India’s deep-tech ecosystem enters its next phase of growth, traditional venture capital models built around rapid scaling and quick exits are becoming increasingly incompatible with the realities of science-led innovation, according to Equirus InnovateX Fund.
Commenting on the evolving investment landscape, Sadhika Agarwal, Lead – Investments, Equirus InnovateX Fund, said that India’s emergence as a global innovation hub across artificial intelligence, semiconductors, advanced manufacturing, defence, space technology and biotechnology is compelling venture investors to fundamentally rethink how capital is structured and deployed.
“India’s next generation of technology leaders will not be built on the timelines that defined consumer internet or SaaS businesses. Deep-tech ventures require patient, conviction-led capital that aligns with longer product development cycles, regulatory milestones and manufacturing scale-up. The venture capital industry must evolve from rewarding speed to enabling enduring innovation,” Agarwal said.
India’s deep-tech ecosystem has witnessed significant momentum in recent years, attracting over US$28 billion in investments since 2016. However, unlike software-led businesses, deep-tech companies often spend years validating technologies, developing intellectual property, navigating regulatory approvals and establishing manufacturing capabilities before achieving commercial scale.
According to Agarwal, forcing such businesses into conventional five-to-seven-year venture capital cycles can lead to premature scaling, short-term decision-making and erosion of long-term competitive advantage.
“These companies are creating foundational technologies that can define industries for decades. Success cannot be measured purely by near-term revenue milestones. Investors increasingly recognise that intellectual property, technological defensibility and execution capability are stronger indicators of long-term value creation,” she added.
The changing nature of innovation is also reshaping investor behaviour globally. Institutional investors with longer investment horizons including sovereign wealth funds, family offices and university endowments are showing greater willingness to back deep-tech focused funds that prioritise technology compounding over rapid mark-ups.
Venture funds are also adopting more flexible investment structures such as continuation vehicles, evergreen funds and blended capital pools that enable longer holding periods while maintaining portfolio discipline. Additionally, strategic corporate investors are playing an increasingly important role by providing domain expertise, commercial partnerships and market validation alongside capital.
India’s policy ecosystem is further strengthening investor confidence through initiatives such as the Research Development and Innovation (RDI) Fund, IN-SPACe, iDEX, Make in India, and defence modernisation programmes, which are accelerating private investment into strategic technology sectors.
“Deep-tech investing requires a new partnership between founders and investors. Entrepreneurs are looking beyond capital to investors who understand technology development, regulatory pathways and commercialisation journeys. The funds that adapt to this new reality will be best positioned to generate sustainable returns while helping build India’s next generation of globally competitive technology companies,” she pointed out.
Several venture investors are already redesigning their portfolio strategies by balancing long-horizon deep-tech investments with businesses that have relatively shorter commercialisation cycles, enabling funds to manage liquidity while continuing to support breakthrough innovation.
About Equirus InnovateX Fund (EIF)
Equirus InnovateX Fund (EIF) is an early-stage venture capital fund established under the Equirus
Group umbrella, officially receiving SEBI registration in 2024. It is based in Mumbai and represents
Equirus’ strategic entry into supporting India’s fast growing deep tech and SaaS ecosystem. Guided by the philosophy “Of Founders, By Founders, For Founders”, EIF’s mission is to identify visionary entrepreneurs and innovative ideas, invest early in their journey, and actively support them in scaling sustainably. The fund envisions becoming a catalyst for India’s next wave of deep tech and SaaS innovation, creating long-term value for both founders and investors.
About The Author
More Stories
CMAI’s 83rd National Garment Fair Sets A New Benchmark With Record Footfalls, 48,500 Trade Buyers And Strong Business Generation.
Palmonas Marks Global Expansion With The Launch Of Its First International Store In The UAE.
India’s Office Absorption Hits Record 23.9 Mn Sq Ft In Q2 2026 As Demand-Supply Gap Widens To 9 Mn Sq Ft, Fueling Rental Growth – Vestian.