TDK Ventures–Kae Capital survey reveals optimism in fundraising, government support, and global competitiveness despite persistent ecosystem gaps
Bengaluru, NFAPost: India’s deeptech ecosystem is entering a decisive growth phase, marked by optimism among founders even as they navigate pressing challenges around capital access, talent shortages, and market readiness.
A new study, Deeptech India 2025: Mapping the Next Frontier, released by TDK Ventures, Inc. (a subsidiary of Japan’s TDK Corporation) in partnership with India-based early-stage investor Kae Capital, captures insights from nearly 100 deeptech founders across the country.
The survey highlights both the promise of high-growth sectors such as Energy Transition, Robotics, AgriTech, Advanced Materials, Semiconductors, Space Tech, and Quantum Computing and the structural bottlenecks still confronting entrepreneurs.
Fundraising: Optimism Despite Scarcity
While a majority of founders acknowledged the difficulty of accessing capital, more than 58% expressed confidence in raising their next round. The survey found:
- 53% believe capital remains difficult to access,
- 44% found it reasonably available,
- Only 3% described funding as abundant.
The leading barriers to fundraising, according to respondents, include:
- Lack of investor understanding of deeptech (45%)
- Long gestation periods (19%)
- Valuation mismatches (13%)
- Limited depth of local venture capital (9%)
“Deeptech demands a fundamentally different and nuanced approach. India is at the cusp of transformative growth in this space, and this survey not only strengthens our understanding of founders’ challenges but also highlights India’s potential to build global deeptech leaders,” said Nicolas Sauvage, President, TDK Ventures.
Talent and Market Frictions
Despite optimism, two systemic hurdles continue to weigh heavily on founders: market adoption and skilled talent.
- 44% of respondents believe domestic markets are becoming more receptive to deeptech, but many cited challenges such as pricing mismatches (31%) and difficulties in overseas go-to-market strategies (31%).
- Low technology maturity and limited engagement from Indian OEMs further constrain scaling opportunities.
On the talent side, 45% of founders identified skill shortages as their top concern, followed by high salary expectations (22%) and competition from multinational companies offering better compensation (20%).
“Deeptech founders in India are tackling problems that demand long-term commitment, significant technical depth, and a strong ecosystem to lean on. By enabling stronger capital participation and creating pathways to global markets, we want to help Indian founders build companies that don’t just succeed here, but lead on the world stage,” said Abhishek Srivastava, General Partner, Kae Capital.
Infrastructure and Policy: Green Shoots Emerging
The study reveals uneven access to critical infrastructure:
- Only 23% of founders reported full access to labs, fabs, and test facilities,
- 57% had partial access,
- 20% had none.
Government policies, however, are beginning to show impact. Founders pointed to:
- Tax incentives (27%)
- R&D policies (23%)
- Public procurement opportunities (12%)
“Despite challenges across funding, talent, infrastructure and policy, founders remain optimistic about India’s deeptech trajectory. The country’s deeptech ecosystem is entering a decisive growth phase, and at TDK Ventures we are committed to bridging gaps and enabling the next wave of innovation,” noted Ravi Jain, Investment Director, TDK Ventures India.
A Decisive Decade Ahead
The report underscores that India’s deeptech founders are cautiously optimistic—confident in their ability to innovate and scale, but acutely aware of the ecosystem’s gaps. With increasing policy support, global investor attention, and rising domestic demand, the coming decade could determine whether India transitions from being a promising deeptech hub to producing world-leading companies.
