A group of eight U.S. and Indian venture capital and private equity firms has launched a $1 billion investment alliance aimed at accelerating the growth of India’s deep tech sector. The newly formed India Deep Tech Investment Alliance was announced during the Semicon India 2025 conference and is intended to deploy capital across high-potential early and growth-stage companies focused on technologies such as semiconductors, AI, space, robotics, clean energy and biotech.
The participating firms include Accel, Blume Ventures, Celesta Capital, Premji Invest, Gaja Capital, Ideaspring Capital, Tenacity Ventures and Venture Catalysts. Each of the founding members has committed to making long-term investments in Indian startups, spanning from seed-stage rounds through Series B. The alliance is structured to deploy over $1 billion collectively over the next five to ten years. The alliance is also designed to work in coordination with India’s national policy efforts to boost research and innovation in critical technologies.
Earlier this year, the Indian government approved a 1 trillion rupee (approximately $11 billion) Research, Development and Innovation (RDI) scheme focused on supporting indigenous capabilities in frontier technologies. The private capital commitment through this alliance is viewed as complementary to the government’s initiative. The alliance has established an advisory committee comprising representatives from each member firm. The committee will oversee collaboration on deal sourcing, due diligence, and startup pipeline development, while allowing each investor to maintain independent decision-making over capital deployment.
Eight venture firms collaborate for long-term startup growth
The structure is intended to ensure consistency in investment themes without affecting the autonomy of individual firms. Celesta Capital Founding Managing Partner Sriram Viswanathan stated that the objective is to help build globally competitive deep tech companies from India. The firms plan to support startups not only with funding but also by facilitating connections with global technology supply chains, potential customers, talent pools and commercialization partners.
According to industry data, deep tech startups in India represent less than one percent of total startup funding, despite growing interest in areas such as quantum computing, cybersecurity, energy storage, and advanced materials. The longer gestation periods and capital intensity of these sectors have often posed challenges in attracting sustained venture funding. The alliance aims to address this gap by committing capital with a longer investment horizon.
Tenacity Ventures, one of the founding members, said the group will focus on companies solving foundational technological problems rather than incremental software development. The goal is to back startups involved in building core technologies and engineering-driven products, particularly those that align with India’s strategic priorities. The alliance also plans to work with ecosystem enablers, including academic institutions, government-backed incubators, and research centers, to identify and nurture deep tech innovation from the ground up.
Investment focus includes AI, space, and energy tech
By aligning efforts between public and private stakeholders, the group intends to streamline the development cycle for early-stage ventures. The India Deep Tech Investment Alliance represents one of the largest coordinated efforts to date to fund technology sectors that require sustained research, significant capital, and a long-term outlook. Each member firm will invest from its own fund rather than through a pooled vehicle, allowing for flexibility in strategy while maintaining common focus areas. The launch of the alliance follows an uptick in cross-border collaboration between the U.S. and India on advanced technologies.
While the alliance is privately led, its formation coincides with broader bilateral efforts to deepen cooperation in strategic and emerging tech sectors, particularly in semiconductors and AI. At its launch, the alliance signaled that additional firms may join in the future, although no expansion details have been confirmed. The advisory committee will coordinate ongoing operations and partnerships while tracking investment outcomes across portfolios. The alliance has not disclosed target company names or sectoral allocations at this stage, but investment activity is expected to begin within the current financial year. – By Content Syndication Services.