Analysis · Professional & Local Services

Lightspeed India partner warns of AI talent exodus

By Startup Enthusiast · 5 March 2026

What they do

Lightspeed India is a venture capital firm investing in Indian startups

Partner Hemant Mohapatra said Indian AI founders and students are moving to the US for better opportunities

The firm is raising a $500M fund and plans to fund founders before they migrate

Lightspeed India partner Hemant Mohapatra gave an interview to Inc42 about India's AI talent crisis.
He said Indian AI founders and students are moving to the US for market, capital, and enterprise access.
Mohapatra noted that building an AI ecosystem from India is tough because the ecosystem does not exist.
Indian AI talent does PhDs in the US and does not stay in India.
He called the talent exodus to Silicon Valley an existential threat to India-focused VCs.
Mohapatra said the capital constraint is solvable, but the problem is more complex.
Lightspeed's strategy is to aggressively fund the best tech founders before they migrate.
The firm is raising a new $500M fund for India and Southeast Asia.

If all entrepreneurs leave India, Lightspeed has no business.
The problem spans policy, infrastructure, research ecosystems, and talent concentration.
Capital only solves part of the AI talent crisis; policy, research infra, and regulatory frameworks are outside VC purview.
Lightspeed influences and advises the government on policy.
Early-stage VC focus in AI can enable the ecosystem and reverse migration.

Lightspeed India is a venture capital firm that invests in Indian startups.
It focuses on early-stage investments, with 80% of deals concentrated in Series A and B stages globally.
The firm's investment thesis prioritises founder quality over sector trends.
Its portfolio includes Pixxel (satellites), Agnikul (rockets), and Exponent Energy (batteries).
Lightspeed has intensified its deep tech focus over the past year.
It cultivated a deep tech pipeline through engagement with IIT Bombay SignLab, IIT Madras innovation centers, IIT Hyderabad D-Hub, BITS Pilani, and Delhi engineering colleges.
The firm launched a deep tech accelerator called India Ascends.
India Ascends received over 4,000 applications; only 12 founders were selected (0.25% acceptance rate).
Selected founders receive checks up to $2M, and the program avoids exclusivity.

Lightspeed plans to back the best founders with 15-20 investments annually regardless of market conditions.
The firm aims to fund founders before they migrate to the US.