U.S. and Indian Venture Capitalists Launch Deep Tech Investment Alliance

Formation of a Cross‑Border Investor Coalition

Eight venture capital and private equity firms from the United States and India announced the creation of the India Deep Tech Investment Alliance. The founding members include Accel, Blume Ventures, Celesta Capital, Gaja Capital, Ideaspring Capital, Premji Invest, Tenacity Ventures and Venture Catalysts. In a joint statement the firms pledged more than $1 billion of private capital to be deployed over a five‑ to ten‑year horizon, focusing on early‑stage deep‑tech companies that are incorporated in India.

Alignment with Government Policy

The alliance is timed to leverage India’s recently approved research, development and innovation (RDI) scheme, a trillion‑rupee program intended to boost deep‑tech research and commercialization. The RDI scheme requires participating startups to be India‑domiciled and to operate in designated “sunrise” sectors. Alliance members have committed to meeting these criteria, positioning the coalition as a unified voice that can engage with policymakers on incentives and regulatory matters.

Strategic Objectives and Support Services

Beyond capital, the alliance will offer mentorship, network access and assistance with market expansion for portfolio companies. Members plan to coordinate on pipeline development, due diligence and co‑investment opportunities while preserving the independence of each fund. An advisory committee, comprising representatives from Accel, Premji Invest and Venture Catalysts, will help set shared objectives and manage coordination.

Leadership and Governance

Celesta Capital managing partner Arun Kumar will serve as the inaugural chair of the alliance, with leadership slated to rotate over time. Sriram Vishwanathan, founding managing partner at Celesta Capital, emphasized that the coalition is “in line with the strategic interests of both India and the U.S. at the governmental level, focusing on critical and emerging technologies.” He noted that the alliance will concentrate on startups from seed to Series B stages and will avoid late‑stage investments.

Potential Impact and Risks

The alliance seeks to address long‑standing funding gaps for Indian deep‑tech ventures, many of which have traditionally raised capital abroad. By pooling patient capital and providing a coordinated industry voice, the coalition could accelerate the development of foundational technologies such as artificial intelligence, semiconductors, space systems, quantum computing, robotics, biotechnology, energy and climate solutions. However, the group acknowledges that coordination challenges could leave promising companies without needed support if the partnership falters.

Broader Context

The initiative arrives amid broader efforts to deepen U.S.–India technology ties, including recent governmental collaborations. While geopolitical tensions have surfaced in other areas, the alliance reflects a shared belief among investors that India offers a compelling market for deep‑tech innovation and a fertile ground for U.S. firms seeking expansion.