New fund · Enterprise Software & IT

Shastra VC launches $100 million Fund III for deeptech investments

What they do

Shastra VC is a venture fund focusing on deep technology and artificial intelligence companies

The firm raised $100 million for its third fund to invest in seed through Series A stages

This launch aligns with rising government support and investor appetite for Indian deeptech sectors

Shastra VC has launched Fund III with a total size of $100 million.
The fund targets early-stage startups in deep tech, AI, climate, and defense sectors.
Investment checks range from $500K to $3M per company across seed to Series A.
Previous funds deployed over $50 million into more than 30 portfolio companies.
Portfolio firms have raised over $80 million in follow-on capital since Shastra's investment.
Founders Vasant Rao, Avijeet Alagathi, and Ashis Nayak lead the new fund initiative.
The firm previously operated under the name Veda VC before rebranding to Shastra VC.
Advisory network includes former Tech Mahindra CEO CP Gurnani and ex-Kotak executive C Jayaram.

Deep tech became the third most-funded segment in India in 2025 with $500 million invested.
Government benefits like Startup India extensions and RDI schemes support deeptech growth.
Peer funds like Piper Serica are also launching large vehicles for Bharat tech.

Shastra VC focuses on IP-led and proprietary technology startups.
Key sectors include AI, climate, spacetech, defense, and renewable sciences.
The fund also invests in semiconductors, advanced manufacturing, and biotech.
It targets companies from seed through Series A funding stages.
Portfolio examples include Simplismart, Alt Carbon, and Sisir Radar.
The firm maintains a technical champions network of over 30 experts.
Advisors provide strategic guidance alongside operational support for portfolio companies.
The fund aims to back founders building scalable deep tech solutions.
Previous deployments show a track record of supporting early-stage ventures.