Deep Tech Start-ups

Minister of State for Electronic and Information Technology recently announced that Government will soon launch “Digital India Innovation Fund” to support Deep Tech Start-ups.

What is Deep Tech Start-ups ?

Deep Tech startup is a class of startups that provide technological solutions based on substantial scientifically or engineering challenges. It cal also be defined as a type of startup companies that develop new products based on scientific inventions or meaningful engineering innovation.

What are the characteristic of Deep Tech Startups ?

• Disruptive Nature: They often create new markets or disrupt existing ones through radical innovations. For example, the creation of Silicon ships revolutionizes the electronic industry.
• Time Period: The time required for developing new practical applications from basic science in deep tech exceeds the time required by present startups to develop new products using deep tech. For example, it took a lot of time for developing Artificial intelligence but the current AI-based startup industry is expanding at an unprecedented scale.
• Initial Funding: They initially require a large amount of funding for R&D and prototype development whose large portion comes from angel or seed investors.
• They have the potential to create macro-level social and economicimpact through their cutting-edge R&D.

What is the status of Deep Tech Start-ups in India ?

• India is home to over 3000 start-ups, with an overall growth of 53% in the past decade.
• They are present in areas like Artificial Intelligence( AI), Internet of Things (IoT), Machine learning, Quantum computing, Big Data analytics, etc. AI and IoT account for 2/3 of Deep Tech start-ups.
• They comprise 12% of total startups in India and have raised a cumulative funding of $2.65 billion in 2021.
• Currently, 14 Deep Tech Unicorns are employing around 4000 people, which is likely to be doubled by 2026.

What are the issues affecting growth of Deep Tech start-ups in India?

Deep tech start-ups are facing multiple challenges like talent and market access, customer acquisition, lack of initial funding, research guidance etc.