Deeptech's Great Escape: Labs Out, Funds In – The 2025 Horizon
For too long, deeptech has been the brilliant, slightly awkward cousin at the innovation family reunion, tinkering away in the garage while everyone else celebrated the latest app. But make no mistake, 2025 is shaping up to be its 'about damn time' moment. VCs are finally seeing past the complex algorithms and molecular structures, realizing that true disruptive potential often wears a lab coat before it dons a business suit. The era of treating deeptech purely as a philanthropic science project is over; the market is ready for commercial viability, and the smart money is starting to line up.
Indeed, the market sentiment echoes a strategic patience that anticipates a significant inflection point. Venture capitalists in India, specifically, project deeptech funding to maintain a steady course in the $1-1.5 billion range through 2025-2026. However, a robust acceleration is firmly on the horizon for 2027-28, a surge expected to be propelled by comprehensive policy support, the crucial launch of the Research Development Incentive fund, and a burgeoning pipeline of deeptech startups maturing beyond their initial R&D phases into commercially viable, market-ready enterprises.
