Core Insights - Corporate participation in deeptech funding rounds has significantly declined, with only 62 out of 192 rounds reported this year, marking a drop from 167 rounds in 2021 and 128 in 2024, indicating a 10% year-on-year decline [1][13][14] - Total investments in deeptech with corporate participation have fallen to $328 million this year, nearly half of 2024's $606 million and far below the peak of $1.3 billion in 2022 [2][14] - Deeptech startups typically require longer development times and higher capital compared to consumer-tech startups, taking about 3-5 years for research and an additional two years for product fine-tuning [1][14] Corporate Involvement - Corporate validation is crucial for deeptech startups, providing both validation and market feedback on product development [2][14] - Corporates are increasingly reluctant to invest in hardware startups due to concerns about meeting customer needs and the associated risks of supply chain failures [3][4][14] - Despite government initiatives like the Rs 1 lakh-crore Research, Development, and Innovation (RDI) Scheme aimed at promoting deeptech, corporate risk aversion persists [4][14] Investment Trends - Deeptech startups in India have raised over $10 billion since 2019 across various sectors, including AI, spacetech, semiconductors, robotics, healthtech, and clean energy [8][14] - Some corporates, such as Zoho, Solar Group, and Archean Chemical Industries, continue to invest in deeptech startups, indicating that strategic fit remains a key factor in corporate investments [12][14] - Founders express concerns about the expectations and potential strings attached to corporate investments, emphasizing the need for clarity on the purpose of seeking corporate partnerships [10][11][14] Market Dynamics - The bias in corporate investments tends to favor existing sectors like electric vehicles (EV) and drone technologies, while deeptech sectors often struggle to attract similar levels of interest [7][14] - Corporate involvement is particularly valuable in helping startups transition from the minimum viable product (MVP) stage to market readiness [6][14] - The challenges faced by deeptech startups include navigating corporate expectations and the potential for exclusivity or takeover agreements that may complicate their growth [10][11][14]