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\n\t\u201cWe have just under 140 startups \u2014 built over 10 years. Roughly one-third are founded by IISc faculty. We incubate only true deep-tech companies, and early funding has been the most persistent challenge \u2014 venture capitalists\u2019 (VCs) appetite to invest very early is still limited,\u201d C S Murali, chairman of FSID STEM, IISc\u2019s deep-science incubator, told Business Standard in a video interview. \u201cEarlier, VCs hesitated to back companies whose main customer could be government or defence. That has changed. Products with dual-use potential are seeing better traction.\u201d<\/p>\n
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\n\tDeep science incubator STEM, part of FSID (Foundation for Science, Innovation and Development), has incubated startups working on next-generation materials, advanced robotics, computational biology, climate technology, quantum-aligned systems and advanced hardware.<\/p>\n
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\n\tOne of them is PathShodh Healthcare, which is developing handheld diagnostic devices to test for diabetes, kidney disease, anaemia and liver disorders. The company has become revenue-positive with steady growth and seeks \u20b9100 crore in revenue in the next financial year. It has the capacity to manufacture 10 million diagnostic strips monthly for glucose, HbA1c and haemoglobin testing. The devices are used by several super-speciality hospitals in various cities. States have also used the company\u2019s kits in public health programmes, including roughly one million tests under Bengaluru\u2019s Namma Clinic initiative.<\/p>\n
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\n\tAstrome, another IISc portfolio company, is building satellite communication solutions using low-earth orbit satellites and millimetre-wave technology \u2014 targeting both defence and commercial customers as India\u2019s space economy is projected to reach $40 billion by 2030. General Aeronautics, also incubated at IISc, focuses on system-level aircraft design and development. The startup designs and manufactures unmanned aerial vehicles focused on security and civilian applications; for example, it engaged with farmers and local authorities to deploy drone swarms for locust infestation control and timely support. Kota Harinarayana, a cofounder of General Aeronautics, is renowned for his former role as the programme director and chief designer of India\u2019s indigenous light combat aircraft.<\/p>\n
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\n\tGeopolitics has sharpened the strategic case. Murali noted that countries are no longer willing to share critical technology freely. \u201cIt is now essential to have Indian companies building technology from the ground up \u2014 reducing dependence in areas like semiconductors, GPS, and health care,\u201d he said. \u201cTo give one example: turbines. A few years ago, it surprised many that not a single aircraft turbine was built in India \u2014 whether small turbines for drones or larger ones for other applications. Today, in our portfolio, we have at least two companies building turbines.\u201d<\/p>\n
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\n\tGiven long gestation periods, many companies that were incubated six to eight years ago are already in the market. \u201cSome are approaching \u20b9100 crore in revenue; others are in the \u20b910\u201320 crore range.\u201d<\/p>\n
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\n\tEarly-stage funding is a bottleneck for early-stage startups. VC firms typically avoid investing and government schemes, which offer relatively small grants, are largely geared toward software ventures. To address the gap, IISc\u2019s incubator is working to set up its own fund and expects to pilot it with the Securities and Exchange Board of India in the coming weeks. Similar efforts are underway at several IITs, and the government’s \u20b91 trillion Research and Development Innovation Fund (RDIF) could ease constraints further by mid-2026.<\/p>\n
\u00a0<\/p>\n
\n\tIISc\u2019s fund targets a corpus of about $25 million, which could double to $50 million if matched under RDIF. The incubator has already secured soft commitments amounting to roughly 20 per cent of the target from individuals and companies.<\/p>\n
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\n\t\u201cThe objective is to ensure that from incubation, startups have enough capital to reach a stage where larger VCs can invest with confidence. It’s not meant to fund them all the way to scale.\u201d<\/p>\n
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\n\tThe incubator requires a startup to have at least a working lab prototype before it is admitted for support \u2014 research papers alone are not sufficient. Startups are also pushed to validate demand and pricing early, and receive mentoring on enterprise procurement cycles.<\/p>\n
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\n\tThe cultural shift within IISc itself has been as significant as any policy change. \u201cTen years ago we were asked: at MIT or Stanford, faculty-started companies are common \u2014 why not in India? The focus was on papers, citations, and conferences. That has changed \u2014 policy now evaluates faculty on entrepreneurship too, not just publications,\u201d Murali said.<\/p>\n
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\n\tHe said deep-tech startups should focus on building products customers will buy rather than chasing high valuations, noting that the second metric often reflects market conditions and investor negotiations rather than underlying product strength. India does not lack entrepreneurs, he added, but needs deeper pools of capital; angel investors typically write smaller cheques relative to the intensive funding requirements of deep-tech ventures.<\/p>\n
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\n\tGovernment procurement, Murali said, could be the lever that changes this. Broader adoption of domestic innovations across public-sector programmes, he argued, would do more to accelerate India\u2019s deep-tech ecosystem than any single fund.<\/p>\n
\n\u00a0 <\/p>\n","protected":false},"excerpt":{"rendered":"\u00a0
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