India, Nov. 2 -- Indian VCs And The Deeptech Dilemma

Skyroot has proved that homegrown startups can build rockets, but the bigger challenge may lie in funding them. A recent viral critique of Indian venture capitalists has reignited the debate over deeptech funding gaps, risk appetite of investors and slow diligence.

Founder Grievances: For many early stage founders, deeptech funding in India remains plagued by prolonged due diligence, demands for commercial traction before validation and an over-reliance on founder pedigree. Their criticism is aimed at the current system, which may be underwriting very little genuine technological risk and backing a handful of startups.

Concentration Problem: Data adds further nuance to the debate. De...