ValleyNXT Ventures has launched the Bharat Breakthrough Fund‑I with a target corpus of ₹400 crore to back early‑stage deep‑tech startups across AI, space, defence innovation, robotics, cybersecurity and sustainability, aiming to fill a critical funding and mentorship gap for India’s high‑impact technology ventures.
Fund structure and objectives
Registered as a SEBI Category I venture capital fund, Bharat Breakthrough Fund‑I will initially target a base corpus of ₹200 crore, with a greenshoe option to raise an additional ₹200 crore. The fund positions ValleyNXT as an institutional backer for startups operating in strategic sectors that are central to India’s long‑term technological growth and national priorities.
Focus on seed to pre‑Series A startups
The fund is dedicated to investing in companies at the seed to pre‑Series A stage — a phase commonly regarded as the most challenging in a startup’s lifecycle. Early‑stage founders frequently face capital shortages, limited strategic guidance and few industry connections; the new fund aims to address these constraints.
ValleyNXT plans to combine financial capital with structured mentorship and market access, helping founders progress from product validation to scalable growth. This blended approach is designed to reduce execution risk and improve the likelihood of sustainable scaling.
Sectoral priorities
Bharat Breakthrough Fund‑I will prioritise deep‑tech and innovation‑led businesses across artificial intelligence and machine learning, defence and aerospace technologies, robotics and automation, space research solutions, cybersecurity, biotech and life sciences, climate innovation, and technology‑driven consumer models.
These focus areas align with recent government initiatives to bolster indigenous manufacturing, defence production and private sector participation in space, creating a supportive policy environment for technology startups.
The MIB Framework: mentorship, investment and business connects
A central feature of the fund is ValleyNXT’s proprietary MIB Framework — Mentorship, Investment and Business Connects. Beyond capital, the firm will provide accelerator‑style mentoring, expert guidance and industry partnerships to help founders sharpen strategy, validate product‑market fit and build robust operational frameworks.
By integrating investment with hands‑on support, the model seeks to tackle common failure points for startups, such as inadequate advisory support and premature scaling, thereby creating long‑term value for founders and investors alike.
Leadership and prior experience
The fund is led by industry veterans including Dr. Nikhil Agarwal, Dr. Madhu Vasepalli, Anand Saklecha and Suresh Goyal, who bring experience in venture investing, technology development and entrepreneurship mentoring. ValleyNXT has previously evaluated thousands of startups and backed multiple early‑stage companies through angel and accelerator initiatives.
With Bharat Breakthrough Fund‑I, the firm is formalising its investment strategy under a regulated VC structure to scale its support for high‑potential deep‑tech ventures.
Implications for India’s deep‑tech ecosystem
The fund’s launch comes at a time of rising investor interest in deep‑tech, defence innovation and space technologies. By channeling capital and structured support into research‑driven sectors, Bharat Breakthrough Fund‑I aims to nurture next‑generation Indian startups capable of competing globally and contributing to the country’s technology leadership.
For the broader startup ecosystem, the initiative signals sustained investor confidence in long‑term, technology‑first ventures and may encourage further flows into strategic, innovation‑led companies.
