Long Gestation Period Hinders Funding in Deep Tech Start-ups, Says DST Secretary Abhay Karandikar

The long gestation period in deep-tech areas is acting as a hinderance, as per the DST secretary. However, he expressed hopes that government incentives would change the game

Nabodita Ganguly

Updated on: 23 November 2024 11:56 am

Long Gestation Period Hinders Funding in Deep Tech Startups, Says DST Secretary Abhay Karandikar

Department of Science and Technology Secretary Abhay Karandikar said on Saturday that India has a vibrant ecosystem for start-ups and investors. He was addressing an event in New Delhi.

Speaking at StartUp Masters Class , he highlighted the reluctance of investors to get into advanced fields. "For funding, we have vibrant venture capitalists. But areas such as quantum, drug discovery, advanced materials, and photonics do lack funding," he added.

The long gestation period in these areas is acting as a hinderance, as per the DST secretary. However, he expressed hopes that government incentives would change the game.

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"I hope the recent announcement announced by Modi Government of Rs 1 lakh crore will help the community to increase private investment," added Karandikar. The Modi government announced an investment of Rs 1 lakh crore to fund research and innovation in the country during the last budget.

"With the Nation Quantum Mission, we approved start ups working in the quantum technology area. For the first cohort, the govt will support 8 start-ups through the mission. Hope the number increases over time," he added.

He further mentioned that the next few years are going to be crucial for deep tech start ups. "In the next five years, we will hopefully create a vibrant ecosystem and develop cutting edge technology that will make us world leaders in technology," added Karandikar.

He further mentioned that the Department of Science and Technology (DST) was one of the first pioneers in setting incubators. "Currently, we are supporting more than 150 incubators across the country," Karandikar said.

The DST has taken several initiatives in the area along with collaboration with 25 top academic institutions, he added. The idea, as per the official, is to work towards increasing the number of deep tech start ups which currently constitute a very small chunk of the start up ecosystem.

StartUp Masters Class is being organised by the IIT Kanpur Alumni Association's Delhi Chapter in collaboration with the Department of Science and Technology, Government of India.

The event saw presence of several personalities including Amitabh Kant, G-20 Sherpa, Ashutosh Sharma, President, Indian National Science Academy, and Sanjeev Bikhchandani Founder and Executive Vice Chairman of InfoEdge, among others.