Kant said the fund of funds will be crucial in attracting private investment and sharing risk with venture capitalists. “One of the main reasons why the startup movement took off in India was because we had this fund of funds for startups. If you have a fund of funds for deep tech—a large one for deep tech and clean tech—that will enable risk sharing with VCs,” he explained.
He added that patient capital is necessary for deep tech projects, and stressed the need for collaboration between the government and private sector. “Not merely should the government create a fund of funds, but LIC should also create one. So, should Reliance, Adani, and other big conglomerates. This will attract many VCs to invest in deep tech, because the upside for the country will be enormous,” Kant said.
According to him, India still lacks enough deep tech startups to fully realise the country’s potential in sectors such as clean technology, advanced materials, and next-generation computing. The fund of funds, he noted, will only take a quarter of the risk, making it a practical model to encourage both innovation and private sector participation.
Kant urged stakeholders to move quickly to operationalise the fund, warning that delays could slow India’s progress in emerging technologies. “I’m just saying what was announced in the budget needs to be rapidly implemented now,” he said, underlining the urgency of acting on policy announcements.
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(Edited by : Ajay Vaishnav)