Venture capital firm Venture Catalysts plans to make around 60 investments in 2026 and each year thereafter, while increasing the amount of capital deployed per company as it shifts to a more selective strategy.
From Volume to Value
“Going forward, our approach is becoming more targeted and conviction-led rather than volume-driven,” Apoorva Ranjan Sharma, co-founder, Venture Catalysts, told Fe. In 2025, the firm invested Rs 136.97 crore across 48 startups.
Sharma said the overall investment outlay is expected to grow 1.5 to 2 times compared with 2025, reflecting a focus on backing fewer but higher-quality opportunities aligned with its deeptech and AI-led strategy. Past investments include Ethereal Machines, Zetwerk, Renee Cosmetics, Beardo and LetsTry.
The firm is now expanding into AI-led biotech platforms, data science infrastructure and startups building intelligence layers for manufacturing and enterprise operations. “These are sectors we believe will define the next phase of the startup ecosystem,” Sharma said.
Venture Catalysts is also moving towards larger early-stage participation. Initial cheque sizes will typically range from $500,000 to $5 million, with capital reserved for pre-seed and seed rounds as well as follow-on investments. The firm plans to lead or co-lead rounds where it has high conviction and support founders through multiple stages of growth.
Deeptech and Global Supply Chain Shifts
While fintech and consumer businesses will remain relevant, the firm’s forward strategy prioritises deeptech, AI infrastructure, cleantech and industrial innovation. Deeptech-led opportunities are expected to account for over 50% of investments over the next three years. Within this, applied AI, AI-led SaaS and enterprise deeptech will remain core areas of focus.
“India is seeing a structural shift driven by manufacturing expansion, AI infrastructure build-out and global supply chain realignment,” Sharma said, adding that the firm is bullish on manufacturing technologies improving efficiency and automation, particularly in electronic manufacturing, which he said is growing at nearly 35%. It is also evaluating biotech and healthcare deeptech platforms that accelerate drug discovery and AI-enabled research.
Sharma said the market is moving towards businesses that deliver measurable efficiency and long-term value. “Founders are far more focused on unit economics, governance and solving real problems,” he said.
However, liquidity constraints and longer exit timelines remain challenges. Sharma expects selective, high-quality listings rather than a broad IPO wave. “Listings may remain measured, but quality should improve,” he said, adding that valuations have corrected and the focus has shifted back to fundamentals and capital efficiency.