The Union Minister of State (Independent Charge) for Science and Technology, Earth Sciences, and Minister of State in the Prime Minister’s Office, Dr. Jitendra Singh, informed Parliament about the Antariksh Venture Capital Fund (AVCF) and its role in strengthening India’s growing space ecosystem.
The Antariksh Venture Capital Fund (AVCF) has selected three space-tech startups for investment under its initiative to support innovation and promote the commercialization of advanced space technologies in India.
The AVCF is a SEBI-registered Category II Alternative Investment Fund (AIF) established to provide equity funding to emerging space-tech startups. Its primary objective is to help startups develop innovative technologies, commercialize their products, and scale their operations, thereby contributing to India’s long-term space ambitions.
As outlined in the Fund’s Investment Objective and Investment Strategy (Clauses 2.7.2 and 2.7.3), the fund focuses on supporting space-sector startups at various stages of growth. Investments are made in compliance with the SEBI (Alternative Investment Funds) Regulations, the Fund’s Private Placement Memorandum, and other governing documents.
According to the investment strategy, the fund aims to back promising startups developing cutting-edge space technologies, enabling them to expand their businesses and bring innovative solutions to the market while strengthening India’s space capabilities.
During the financial year 2026–27, IN-SPACe has contributed ₹182.87 crore to the fund based on investment requirements communicated by the Fund Manager under the Contribution Agreement.
While there is currently no quantified estimate of the Venture Capital Fund’s direct impact on the growth of India’s space economy, the investments are expected to play a significant role in fostering innovation and supporting the commercialization of space technologies. The long-term impact on the country’s space sector will be evaluated based on the performance and growth of the startups supported through the fund.
What is the Space Venture Capital Fund?
The Space Venture Capital Fund, officially known as the Antariksh Venture Capital Fund (AVCF), is a dedicated investment fund that provides equity funding to startups in India’s space sector. The fund is designed to help emerging space-tech companies develop innovative technologies, commercialize their products, and expand their businesses.
The AVCF is a SEBI-registered Category II Alternative Investment Fund (AIF) and is managed in accordance with the SEBI (Alternative Investment Funds) Regulations. It supports startups working in areas such as satellite technology, launch systems, space applications, Earth observation, communication, navigation, robotics, and other advanced space technologies.
Objectives of the Antariksh Venture Capital Fund
The primary objectives of the fund are:
- Provide equity capital to early-stage and growth-stage space-tech startups.
- Support technology development and innovation.
- Help startups commercialize new space technologies.
- Enable companies to scale their operations.
- Strengthen India’s private space ecosystem.
- Contribute to India’s long-term space and economic growth.
Who Manages the Fund?
The fund has been established with support from the Indian National Space Promotion and Authorization Center (IN-SPACe), which promotes private sector participation in India’s space industry.
The fund operates under SEBI regulations and invests in eligible startups through a professional fund management process.
Funding
For the financial year 2026–27, IN-SPACe has contributed ₹182.87 crore to the fund based on investment requirements communicated by the fund manager.
Recently, the fund selected three space-tech startups for investment, marking the beginning of its investment activities.
Who Can Benefit?
The fund is intended for Indian startups involved in:
- Satellite manufacturing
- Launch vehicle technologies
- Space communications
- Earth observation and remote sensing
- Space-based data analytics
- Space robotics
- Navigation technologies
- Deep-space and emerging space innovations
Why is the Fund Important?
The Antariksh Venture Capital Fund addresses one of the biggest challenges faced by space startups—access to growth capital. By providing equity investments rather than loans, the fund allows startups to focus on research, product development, testing, and commercialization without the immediate burden of debt.
The fund is expected to:
- Accelerate innovation in India’s space sector.
- Encourage private investment in space technologies.
- Support the commercialization of indigenous space innovations.
- Create high-skilled employment opportunities.
- Strengthen India’s private space ecosystem.
- Help India emerge as a global hub for space technology and services.