Chennai: Investments in deep-tech startups, driven by artificial intelligence among others have touched an all-time high, reaching $247.78 million, a study has said.
The number is twice as high as it was last year, with 2017 recording only $96.8 million for startups driven by machine learning and robotics apart from AI. It must be noted that deep-tech is terminology for advanced technology used to develop new business models.
Data from Tracxn Technologies, a data analytics firm tracking start-ups states that, in terms of ticket size, the largest investment was raised by warehousing automation and robotics startup Grey Orange.
It raised $140 million in a Series C round from Mithril Capital and Flipkart co-founder Binny Bansal, among others, the report stated and added that Grey Orange was valued at about $500 million.
In October, Concept Medical, a health startup, raised $60 million from angel investor Dr Kiran Patel, in the second biggest tech deal this year. Funding in health-tech start-ups this year hit an all time high of $510 million.
Despite the positives, deal volumes in the deep-tech sector fell for the third straight year from 63 in 2016 and 58 in 2017 to 39 in 2018, indicating larger ticket sizes for individual deals – a trend seen in the broader venture space recently.
According to Tracxn, the total number of private equity and venture capital deals have fallen for the fourth year, though values have consistently risen. While the number of deals has fallen from 876 in 2015 to 659 this year, deal value has risen from $18.2 billion to $27.7 billion.