Deep tech is becoming an increasingly important sector in India, where startups based on deep learning and engineering are looking to make a big impact. However, for these companies to grow sustainably, long-term capital is needed. Arpit Agarwal, partner at Blume Ventures, shared his views on the need for a 15-year fund for deep tech in India in an interview with Forbes India.

Balancing long-term investment and focused execution

According to Arpit Agarwal, while the returns from deep tech companies can be impressive, the biggest challenge for the ecosystem is how to balance funding for projects with long development cycles with the need to commercialize products. Deeptech companies need not only cutting-edge technology but also proven market viability, that is, delivering real value to customers at scale.

“We need funds that are willing to commit for at least 15 years, rather than the typical investment cycle of 8-10 years. Investing in deeptech requires a more patient approach,” Agarwal said.

Blume Ventures’ approach

Blume Ventures is one of the venture capital funds in India that focuses heavily on deeptech companies. What differentiates their strategy is their ability to make decisions quickly without waiting for market consensus.

A prime example is their investment in Carbon Clean, a startup from IIT-Kharagpur that works on carbon capture. “When we first met Carbon Clean in 2011-2012, they didn’t have a clear business plan. But we saw the potential and decided to back them from the start,” Agarwal shares.

Over the next six years, Carbon Clean refined its business model, received funding from the UK government, and is now one of the global leaders in carbon capture technology.

Belief in the future

Blume Ventures has not only focused on deeptech, but has also expanded its portfolio into areas such as electric vehicles (EVs) and SaaS. Their strategy is not based on fixed investment theses, but instead on a belief in instinct and first principles.

“We anticipate future needs, like carbon capture, and invest in teams that have the right motivation to make these ideas happen. We don’t follow trends, we try to lead them,” Agarwal asserts.

Conclusion

Deep tech is a promising sector but it requires a long-term vision and patience from investors. Firms like Blume Ventures are proving that with the right investment strategy and sustained support, Indian deeptech companies can become global leaders. Creating a 15-year fund for deep tech could be the key to making this ecosystem stronger in the future.