Deeptech Investment Gains Momentum
Venture capital firm Shastra VC, formerly known as Veda VC, has officially closed a $100 million fund to back early-stage startups operating at the intersection of deeptech and science-led innovation. The fund marks a strategic pivot and expansion for the firm as it looks to capitalize on the growing demand for sovereign and industrial technologies.
Investment Focus and Strategy
The new vehicle—Shastra VC’s third fund—is designed to deploy tickets ranging from $500,000 to $3 million. The firm is doubling down on high-barrier-to-entry sectors including:
- Artificial Intelligence
- Spacetech and Defense
- Climate Tech and Renewable Sciences
The firm emphasizes an IP-led investment thesis, targeting companies with defensible technology moats rather than purely consumer-facing applications.
Founder Pedigree and Support Network
Shastra VC is led by a trio of operators-turned-investors: Vasant Rao, Avijeet Alagathi, and Ashis Nayak. Their collective experience includes exits to ICICI Lombard and Curefit. Beyond capital, the firm has assembled a technical brain trust comprising 30+ ‘technical champions’—including researchers and operators—and a high-profile advisory board featuring industry veterans like CP Gurnani.
Market Context
Having previously deployed $55 million across two funds with portfolio successes like Simplismart and Alt Carbon, Shastra VC represents a growing trend of institutional capital flowing into ‘hard’ technology sectors in India. The move signals that despite broader market fluctuations, specialized expertise remains the primary driver for venture capital in the current cycle.