Key takeaways: US and Indian venture capitalists have formed an alliance, called the India Deep Tech Investment Alliance (IDTIA), and pledged $1B to fund deep tech Indian startups.
IDTIA will focus on seed stage to the Series B stage businesses and stay away from late stage funding.
Indian startups struggle with bureaucracy, red tapism, compliance burdens, and high taxes, which is why most Indian businesses operate from foreign countries.
That’s precisely why the alliance will engage with the government to discuss more investor and startup-friendly legislation in the country.
India’s deep tech startups are set to receive a major boost with the launch of the India Deep Tech Investment Alliance (IDTIA), which has pledged a $1B fund to strengthen deep tech development in the country.
The alliance includes leading investors from India and the US, such as Blume Ventures, Premji Invest, Celesta Capital, Gaja Capital, Ideaspring Capital, Accel, Venture Catalysts, and Tenacity Ventures.
This move comes at a time when India-US relations are far from smooth. Recently, Donald Trump imposed a 50% tariff on Indian imports due to India’s growing oil purchases from Russia, straining ties between the two nations.
Earlier this year, Trump also claimed credit for negotiating a ceasefire between India and Pakistan after a war-like situation, although there was no official acknowledgement from India – something that may have left Trump a bit salty.
Diplomacy aside, US venture fund houses are now coming together to explore new investment opportunities in India.
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