Karnataka and the Indian Venture and Alternate Capital Association are exploring a government-investor co-investment framework for DeepTech companies. The proposal emerged from a roundtable in Bengaluru chaired by Minister Priyank Kharge.

The discussion focused on how to move Indian DeepTech ventures from research and demonstration to wider commercial use. Participants from investment firms, startups, government, research institutions and industry identified joint funding, intellectual property, research and development, procurement, manufacturing and market access as the main areas for action.

A proposed state-level model would support collaboration between the government and investors, with participants backing a pilot before any wider rollout. They also identified a joint framework for government-investor collaboration as a next step.

Karnataka outlined what it described as a Government First approach for startups working on public sector problems. Under the model, the state would support pilots, funding, sandbox environments and access to government databases.

Officials said the state would also explore shared access to Graphics Processing Units through existing facilities. Investors and other ecosystem participants were invited to engage with Karnataka's Centres of Excellence.

A key issue raised at the meeting was a shortage of capital at the research and proof-of-concept stages, especially at Technology Readiness Levels 1 to 3. Participants said DeepTech founders need more patient domestic capital and clearer paths to later funding rounds.

Another challenge was the gap between successful pilots and paid contracts. Startups can demonstrate technologies but still struggle to win first customers, procurement orders and repeat business in India.

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