Java Capital Launches ₹400 Cr Fund for Seed-Stage Deep Tech Startups

Seed-stage venture capital firm Java Capital has launched its third fund, targeting a corpus of ₹400 crore, including a ₹150-crore greenshoe option, to expand its investments in seed-stage deeptech startups in India.

Java Capital Fund III will be a “first cheque” fund supporting science-driven startups from inception. This fund will maintain its focus on seed-stage investments in sectors with long development cycles, high entry barriers, and robust intellectual property, Moneycontrol reported. 

It will prioritise seed-stage firms in areas including semiconductors, spacetech and aerospace, cybersecurity and defence technologies, robotics and physical intelligence, AI infrastructure and vertical AI, advanced manufacturing and materials, energy and climate infrastructure, quantum systems, and synthetic biology. 

“With Fund III, we are reinforcing that conviction. India has emerged as a global hub for deeptech talent, and we aim to be the first institutional partner for founders building frontier technologies,” Vinod Shankar, Co-founder and Partner, Java Capital, said in a statement. 

Java Capital Fund III intends to invest in 15–20 companies over the next three to four years, with initial investment amounts ranging from ₹6 crore to ₹8 crore. The firm indicated that it will maintain significant follow-on reserves to support portfolio companies through their Series A rounds and subsequent growth phases.

“The best Indian deeptech companies will be global from the start—that’s the shift we’re seeing. I spend most of my time in the US helping our founders figure out who to talk to and how to get in the door. By being embedded in both markets, we help founders think globally from day one. Java Capital Fund III is a launch platform for Indian IP, not just capital support,” Bhargavi Vijayakumar, Co-founder and Partner at Java Capital, added.

Java Capital was founded by Shankar and Vijayakumar, who reside in the United States. The company stated that its international presence helps startups reach customers, talent, and funding across both regions.