CXOToday has engaged in an exclusive interview with Somshubhro Pal Choudhury Co-Founder & Partner at BIF
- Can you share with us the founding story of the Bharat Innovation Fund and its mission?
BIF (Bharat Innovation Fund) was established in 2018 to create the next phase of startup evolution in India focused on more Deep-Tech B2B, IP and innovation-based startups, beyond the current wave of consumer-focused e-commerce, hyper-delivery and marketplace models.
With the emergence of the third wave of Innovation-First startups in India after the Services-First wave in 1990s and Consumer-First wave last decade, the partners saw upfront the challenges encountered by deep-tech startups in accessing early-stage funding and the guidance and help they needed as they were building from India, for the World. Recognizing the focus of the current investor community to back more tried and tested consumer, Fintech and technology-enabled execution businesses, BIF was created to fill this crucial gap. It was one of the earliest Deeptech-focused Pre-series A-Series A fund set up in the country.
- What criteria does Bharat Innovation Fund consider when selecting startups to invest in?
BIF considers several criteria when selecting startups to invest in. These include potentially large markets, the credibility of the team, vision of the founders, scalability, the traction so far and most importantly the technology innovation in the startup. The team looks for the quantum of differentiation and innovation from the technology side, if this is easily achievable by any other company/team or is difficult to replicate. So far, BIF portfolio companies have filed over 75 global patents so far and many have been granted.
Though vertical market agnostic, BIF focuses on 3 key sectors across the entire spectrum of Deeptech
- Deep Science: Coming from research, long development times but crucial for new drugs, new materials, new kinds of batteries, quantum technologies etc. The ecosystem is still emerging in India, strongly supported by universities, research labs, multiple initiatives like the Government’s Deetech policy, quantum mission etc. and government grants.
- Hardware Technologies: India thrives in resource-constrained innovation, evident in ISRO’s space tech sending the moon and Mars rovers at a fraction of the cost compared to other countries.. Examples include innovations in green propellants, 3D-printed rockets, industrial AI, semiconductors, robotics, etc.
- AI & Software: India’s strength lies in affordable talent and software expertise. Startups leverage large data sets and build unique AI models and Advanced SaaS plays with a solid technology moat and patents which are difficult to replicate.
- How does Bharat Innovation Fund differentiate itself from other venture capital funds operating in India?
BIF distinguishes itself from other venture capital funds in India by focusing exclusively on deep-tech startups, particularly those at the pre-Series A and Series-A stages. BIF targets ventures with innovative technologies and significant intellectual property (IP) potential. Led by experienced leaders with both investment and operating experience globally and in India, the fund invests in startups that are ‘Building in India for the World’. With a commitment to nurturing India’s deep-tech ecosystem, the fund investments aim to catalyze groundbreaking innovation and drive impactful change on both local and global scales.
- Could you highlight some of the notable startups in Bharat Innovation Fund’s portfolio and their impact?
BIF made its first investment in Entropik Technology in July 2018, marking a significant milestone in its journey of supporting innovative startups. Entropik Technology (platform for Emotion AI, mapping EEG brainwave signals, facial expression and eye tracking) specializes in helping brands measure consumers’ emotional and cognitive responses, providing valuable insights for enhancing marketing strategies and improving customer experiences.
BIF portfolio includes startups such as A5G Networks, offering autonomous AI-driven mobile network infrastructure solutions for 5G networks both for public networks and enterprise private networks. A5G is making the next generation networks AI-driven and moving the mobile core (the brains of the network) closer to the edge resulting in an order of magnitude improvement in latency and costs.
Similarly, the portfolios include Cybersecurity AI that is revolutionising continuous and automated ethical hacking at scale, a Generative AI Sales Co-Pilot, a startup in Molecular computing, a new kind of polymer for intraocular lens that is configurable, and a new kind of drug where human clinical trials are ongoing that uses the body’s antibodies to fight cancer.
- What role do you believe venture capital plays in fostering innovation and entrepreneurship in India?
Venture capital plays a pivotal role in fostering innovation and entrepreneurship in India by providing the necessary resources and support for startups to thrive. Startups, as the drivers of innovation, are instrumental in fueling economic growth and creating value for both themselves and the broader economy. Through disciplined experimentation and iterative processes, startups take calculated risks, test their products, gather feedback, and iterate swiftly. This agile approach to innovation allows startups to disrupt established businesses, gain market traction, and drive competitive advantage.
With access to funding, mentorship and guidance from venture capital firms, startups can accelerate their growth trajectory. By leveraging these resources, startups can scale rapidly. The venture capitalist can guide the startup through the journey. This symbiotic relationship between venture capital and startups fosters a vibrant ecosystem conducive to innovation, entrepreneurship, and economic development.
The partners at BIF, besides being an investor, we are the most trusted go-to persons for the founders with aligned interest and vision.
- How does Bharat Innovation Fund support its portfolio companies beyond just providing funding?
The partners offer extensive support to its portfolio companies, leveraging its expertise and resources to drive their success. As investors and operating heads of startups and larger companies in the past, the partners played an active role in opening doors for founders to access markets and connect with customers, facilitating valuable market insights and opportunities for growth. The BIF team has a significant focus on Governance and associated best practices. They adopt a hands-on approach, assisting founders in strategizing, identifying potential challenges, hiring CXOs and refining their business models. Additionally, the partners guide messaging and presentation and navigate portfolio companies through subsequent funding rounds, guidance in terms of metrics and numbers the follow-on investors would be looking for and introduction to the right investors. BIF emphasises key priorities such as market and customer signals, team building, product-market fit establishment, and business scalability, aligning efforts with the long-term success and growth of its portfolio companies.
- What challenges do startups in India commonly face, and how does Bharat Innovation Fund help address these challenges?
Startups in India commonly face challenges such as limited access to early-stage funding, especially for deep-tech and IP-focused ventures. Traditional venture capital funds often hesitate to invest in bold but not yet proven technologies, leaving many startups struggling to secure the necessary capital to grow and scale their businesses.
The partners play a crucial role in addressing these challenges by providing pre-Series A and Series-A funding specifically tailored for deep-tech and IP-focused startups. Led by experienced operators and investors, the partners at BIF understand the unique needs and potential of such ventures. By offering financial and operational support at critical early stages, BIF enables startups to develop and validate their technologies, attract top talent, follow-on funding and accelerate their growth trajectory.
Moreover, BIF’s network and expertise extend beyond just providing capital. Through mentorship, guidance, and access to resources, BIF helps startups navigate the complexities of the market, refine their business strategies, and establish valuable connections within the industry. This holistic support system significantly increases the likelihood of success for startups, addressing the challenges they commonly face in the Indian startup ecosystem.
- Can you speak to any specific success stories or notable achievements of startups that the Bharat Innovation Fund has supported?
BIF has played a pivotal role in supporting a diverse range of startups making significant waves across various industries.
For example, Entropik Technologies, which is at the forefront of Emotion AI, offers invaluable insights into consumer behaviour. This company has several large global customers and raised a Series B from one of the top Silicon Valley investors, Bessemer Ventures and is a category creator in Emotional Intelligence globally today.
Detect Technologies, is revolutionizing Industrial productivity and safety in a variety of process industries including oil & Gas with its groundbreaking leakage, corrosion, safety and shutdown solutions, is now expanding globally with Prosus and Shell ventures as investors.
FireCompass, the Cybersecurity AI company has got global customers, funded now by Silicon Valley VC fund Cervin and has been mentioned and covered over 30 times by leading technology and market research organisations like Gartner, Forrester, IDS, GigaOm, etc. as a category creator in Continuous and Autonomous Penetration Testing/Red Teaming.
Similarly, A5G Networks was present at the Mobile World Congress in Barcelona showcasing blazing fast 1.5 Tbps throughput on a single AMD-based server AI-powered Network-as-a-Service offering with Red Hat. Multiple ongoing pilots & deployments are in progress globally across island nations, railways & enterprise private networks!
