Bengaluru-based venture capital firm Shastra VC has launched its third fund with a corpus of $100 million to invest in early-stage deeptech startups, focusing on AI, space and defence technologies, and renewable sciences, according to inc42.com. The fund will provide investments ranging from $500,000 to $3 million, targeting startups from seed stage to Series A and beyond.
Founded in 2022 by former operators Vasant Rao, Avijeet Alagathi, and Ashis Nayak, Shastra VC has previously deployed about $55 million across two funds, backing 30 startups in sectors such as space systems, semiconductors, AI, and biotech. The firm has helped its portfolio companies raise over $80 million in follow-on capital. Notable portfolio companies include Alt Carbon, Simplismart, Sisir Radar, Avammune, and Sanlayan. The founders bring experience from successful exits, including Autoninja and BYG, and the firm has built an advisory network with industry veterans like former Tech Mahindra CEO CP Gurnani.
This fund launch reflects the growing investor interest in India’s deeptech ecosystem, which spans AI, semiconductors, spacetech, and robotics. The sector benefits from increasing government support and a rising number of startups focused on intellectual property-led innovations. Shastra VC’s focus on early-stage deeptech startups aligns with the broader trend of venture capital flowing into technology-driven sectors critical for India’s technological advancement and global competitiveness.
Shastra VC plans to deploy the new fund by investing in startups that demonstrate strong intellectual property and technological innovation. The firm will continue to support companies through seed to Series A rounds and beyond, aiming to foster growth in deeptech domains. Investors and startups can expect Shastra VC to leverage its advisory network and operational expertise to scale portfolio companies in the coming years.