Deeptech Funding Sees A Dramatic 77% Drop In 2023 Compared To 2022

The deeptech sector in India faced a significant funding reduction in 2023, seeing a 77% decrease compared to the previous year. Despite a surge in new deeptech startups, particularly in artificial intelligence, the total funding fell from $3.7 billion in 2022 to just $850 million in 2023. This decline is attributed to a reduced number of large-scale funding deals and a shift towards smaller seed-stage investments. Challenges such as long gestation periods and technical uncertainties in deeptech innovations have made investors more cautious, further exacerbated by a withdrawal of large global investors. Nasscom emphasizes the need for policy interventions, co-investment programs, and enhanced infrastructure to support the sector's growth.