Bridging the Funding Gap for Deeptech Startups: Bharat Innovation Fund The Bengaluru-based fund's investment thesis emphasises technological differentiation and scalability, focusing on sectors like deep science, AI, and hardware technologies.
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Shyam Menon's career in venture capital is a testament to his dedication to deeptech and sustainability. Starting at Conduit Ventures in 2008, Shyam honed his expertise in deep science and energy-tech investments across Europe. His journey then took him to Nadathur Holdings in Singapore, where he focused on sustainability investments in South and Southeast Asia.
Returning to India in 2012, Menon co-founded Infuse Ventures, a climate tech-focused fund. By 2018, he co-founded the Bharat Innovation Fund (BIF) to bridge the gap in funding for deeptech, consumer, fintech, edtech, and technology-enabled execution businesses.
According to Shyam Menon, Co-founder and Partner at Bharat Innovation Fund, since our inception, we have been one of the earliest deeptech-focused pre-Series A to Series A funds in India, committed to nurturing and catalysing groundbreaking innovation from India.
"All partners came from a deeptech startup, VC, or corporate background, and we saw the challenges faced by deep-tech startups in accessing early-stage funding and aimed to provide the necessary guidance and support to these companies, helping them build solutions from India for the world," he shares.
The Bengaluru-based fund's investment thesis emphasises technological differentiation and scalability, focusing on sectors like deep science, AI, and hardware technologies.
Menon highlights that we consider several criteria when selecting startups, including large market potential, the credibility of the team, the founders' vision, scalability, traction, and most importantly, the degree of technological innovation. We focus on the quantum of differentiation and innovation in the technology being developed, ensuring that it is not easily replicable by others.
Since its inception, BIF claims to have made 16 investments, supporting startups like Entropik Technologies, Detect Technologies, A5G Networks, FireCompass, Human Edge, Terra, Portl, Clodura.AI, and PlayShifu.
"Most of the startups in our portfolio are scaling up well since our investment in the early stages of product development," says Menon. "We typically invest up to USD 5 million per company. We start with USD 1 million to USD 3 million cheques and keep the remaining for follow-on rounds. We prefer to lead and price financing rounds."
With an optimistic outlook for FY 2024–25, Menon anticipates increased activity in sectors like Gen AI and related hardware innovations, healthtech, including genetics and its intersection with advanced computing, spacetech, energy tech, quantum computing, robotics, and cybersecurity.
"With the growing support from government initiatives and a more mature ecosystem, we expect to see a surge in high-quality deeptech startups in the country. Our goal is to continue providing the necessary patient capital and strategic support to help these startups navigate their development journeys and achieve commercial success," states Menon.
Facts:
- Portfolio size: 16
- Average Ticket Size: Starting with USD 1 Mn to USD 3 Mn and up to USD 5 Mn per company
- Total Exits: None
- Assets Under Management: USD 100 Mn across two funds: Bharat Innovation Fund and Bharat Inclusion Seed Fund
