Seafund’s Rs 250 crore fund strategy: why only 60% targets deep-tech startups?

Early-stage venture capital firm Seafund is set to raise Rs 250 crore within six months, focusing on investments in 20-25 deep-tech startups over the next two to three years.

The Bangalore-based VC has already invested in nine companies, including semiconductor startup Calligo Technologies and space tech startup TakeMe2Space.

"We will probably deploy only 50-60 per cent of our funds across these 25 companies," said general partner Narendra Bhandari, explaining the strategy behind not allocating the entire corpus to deep-tech ventures.

This approach allows Seafund to maintain flexibility and diversify its portfolio beyond deep-tech, balancing risk while supporting innovation in complex technology sectors.

Bhandari emphasized that while deep-tech startups are a priority, the firm aims to invest disproportionately but not exclusively in this segment, reflecting a cautious yet optimistic investment philosophy.

Seafund’s strategy highlights the challenges and opportunities in funding deep-tech startups, which often require longer gestation periods and higher capital intensity.

By targeting a selective deployment of 50-60% of the Rs 250 crore fund, Seafund positions itself to back promising deep-tech ventures while retaining capital for other emerging opportunities.

This measured investment strategy underscores the evolving landscape of venture capital in India’s technology ecosystem, balancing innovation support with prudent capital management.

Seafund plans to invest Rs 250 crore over the next two to three years, targeting 20-25 deep-tech startups. However, only 50-60% of the fund will be deployed in these companies, according to general partner Narendra Bhandari, as the Bangalore-based VC aims to diversify its investments.