Bengaluru-based early-stage investor Shastra VC launched a US$100 million fund on May 21 to back Indian startups in deeptech and defense as well as AI and renewable sciences. The firm will write cheques of US$500,000 to US$3 million for companies built around intellectual property. This launch expands on approximately US$55 million deployed through its first two funds. Shastra VC, previously known as Veda VC, counts more than 35 startups in its portfolio, including Simplismart and Alt Carbon. The fund launch comes as India rolls out its 100,000 rupees (US$1,000) crore research and innovation scheme, with other investors opening deeptech funds targeting semiconductors, spacetech, and biotech.
Fund Details and Investment Strategy
Shastra VC will target companies built around intellectual property, with individual cheque sizes ranging from US$500,000 to US$3 million. The new fund represents a significant expansion of the firm's deployment capacity, building on the approximately US$55 million invested through its first two funds. The fund's focus areas span deeptech, defense, AI, and renewable sciences.
About Shastra VC
Shastra VC is run by partners with proven track records in building and selling businesses. The firm's founders include entrepreneurs who have executed exits: Autoninja was sold to ICICI Lombard, an Indian insurance company, and BYG was sold to Curefit, a fitness and wellness company. This experience informs the firm's hands-on investment approach. Shastra VC has also built an advisory network that includes former Tech Mahindra CEO CP Gurnani.
Beyond traditional venture investing, Shastra VC established SDEX, a fellowship program offering up to US$100,000 in equity-free funding to help academic researchers commercialize their work. This program aligns with the firm's focus on intellectual property-led startups. Across its portfolio, more than 20 patents have been filed, and more than 12 portfolio companies include PhD scholars on their founding teams.
India's Deeptech Funding Landscape
Shastra's fund launch occurs amid a broader shift in India's startup funding environment. Overall startup funding in India fell 17 percent to US$10.5 billion in 2025. Within this context, deeptech emerged as India's third most-funded startup segment in 2025, with startups raising approximately US$500 million across 87 deals.
Government policy is supporting this deeptech momentum. India introduced a new US$1.1 billion (100 billion rupees) state-backed fund-of-funds targeting deeptech, AI, and advanced manufacturing. State-backed capital can support sectors requiring extended development timelines and higher capital deployment, including semiconductors, biotech, and spacetech.
