Early stage venture capital firm Riceberg Ventures on Tuesday launched a $20 million fund to invest in deeptech startups.
The fund is aiming to invest in about 25-30 deeptech startup with an average ticket size of $0.5 million to bridge the funding gap in the deeptech sector including space tech, cybersecurity, artificial intelligence, and robotics, among others.
“Deeptech has always been at the forefront of industry-defining innovations. While it’s a buzzword today, we began our journey before it gained mainstream recognition,” said Ankit Anand, Founding Partner of Riceberg Ventures, a physicist and DeepTech entrepreneur.
“True venture success comes from investing in disruptive solutions that create entirely new markets or redefine existing ones. This fund is our commitment to supporting deeptech entrepreneurs tackling complex global challenges,” he added.
The VC firm, which was funded in 2023, has invested in startups such as space logistics startup Manastu Space and Signatur Biosciences, among others.
The deeptech startup ecosystem has seen a rise in regulatory support with government initiatives such as the Rs 10,000 crore Startup Fund of Funds and the Rs 50,000 crore National Research Foundation fund.
This sector, according to the firm, faces challenges due to long research and development periods and incubation period, often discouraging investments into these companies.
It is this gap that the VC firm is hoping to address by providing capital and resources to empower these startups.
“Our mission is to empower Indian researchers and entrepreneurs to take center stage, providing them with the resources needed to build the next Google or SpaceX,” said Mredul Sarda, Founding Partner, Riceberg Ventures, IIT Bombay alumnus and former Strategy at Slice, an Indian fintech unicorn.
The firm’s strong presence in the US and Europe will also provide its portfolio companies access to global network or venture capitalists and facilitating co-investments as well as follow-up rounds of funding.
