 Good afternoon to everybody and I hope all of you are safe and sound and healthy in these times You know deep tech I've been investing for almost 20 years now in venture and this is my fourth downturn and this is very different And this is very different because it was multi-dimensional We've had Supply chain issues we have health issues. We've had travel issues and we have a financial issue So it's like four dimensions hitting you at one time however one common theme which is emerging out of all the last I would say eight to ten weeks is That in all of the portfolio companies which we are invested in which is now about 85 And about 50 60 are live They Have all increased their technology element into their product and service and this is without exception And that is something which is very important And and they have introduced new products new services new technology models new revenue models in the market space extremely agile and So the end and this is enabled them to Introduce themselves to new geographies new customer sets and Even going international in fact almost half of the companies we have have a global footprint in about 30 countries And that only technology can do so that so fundamentally as Mr. Tata calls it the smokestack industry Needs a layer of technology to become absolutely more inefficient and and and I will share with you What at the macro level we have and why is first importance of deep tech to India? And then I'll get into what's the real-life applications which we are seeing and how India is moving towards even a much more deeper tech I think tech is also seen by the fact that India has attracted something like 10 plus billion dollars Even in one company, which is digital in nature over the last eight weeks, which is amazing and you know, that's obviously Something which is very rare in the covert times Why is deep tech important? Let me share with you first. It's very important to at a macro level to the GDP and to the market caps if you look at the total market cap of the US and if you look at the top 15 companies of The US in technology who are listed in 2015 they constituted 11.6 percent of The total market cap and in 2019 they increased to 17.82 percent However in India the increase was only from 12.3 to 13.75 percent and incidentally the definition of tech in India is software service companies so effectively You know the message which comes to us from here is that the software service companies are considered to be smokestack It the top 15 companies, you know, they are all companies, which all of you know are Fundamentally product companies. So there's a big value to product companies the top 15 market cap in the US as as a Grieve from 15 as a percentage of GDP grew from 15.9 to 31.3 percent Whereas in India it is not grown at all. It's 7.6 to 7.9 percent and Incidentally the overall market cap of GDP to GDP ratio in US has grown from 1.4 to 1.8 Whereas in India it is declined from 0.6 to 0.57. So what's the learning and what's the implications of this? Deep tech is a very substantial part of market cap in the US and a very substantial part of GDP in the US In India this contribution is on the decline because there is nothing in the public market which is considered to be deep tech In India public market the deep tech companies are software service companies and they do not get valued as deep tech hence if you cons if the if the Economy and the market caps remain exactly the same and no deep tech company comes on to the listing space in the next 10 years the ratio of Market cap to GDP will further decline and the only way to Get deep tech on to the market Public markets is to have them adequately funded and growing through venture through angel investing Etc. So if you look at this the deep tech market cap is absolutely crucial to the macro of the economy So that's the one point which I wanted to make that's not just to VC that's not just to solutions It is also to the macro economy As such it's also the message to the government that a lot of reforms are focused on the public markets and until those reforms are focused on private markets and deep tech The contribution to GDP will not grow If you look at a little bit more detail The we did the analysis of companies which are above a hundred million dollars valuation in the public markets and Above over a hundred million dollar valuation in the private markets There are total 481 companies in the public markets and just 481 This is our stock exchange with thousands of companies in the stock exchange But companies over a hundred billion are only 481 and deep tech is 22 Incidentally that the public tech companies in India are Valued at 220 billion which is 7.86 percent of GDP if you look at the market cap of Private companies funded in the country and by the way this private companies funded is excluding Geo because I didn't add Geo because it was cue the whole thing and Today there are 159 companies which have a market cap of above a hundred million and these are obviously private private valuations and These are the companies which potentially could could be a pipeline for the public markets and if you look at the tech companies 116 Valuation of private tech company 116 and that contributes 4.1 percent Incidentally if you add Geo to it then the market cap of privately funded companies in India has already crossed the Market cap of public tech companies. This is amazing and this is in a much shorter time frame as such So if it's very very important that tech companies be promoted and be influenced by government and by policy by regulation to grow in the Indian market space and on the global platform so effectively the tech impact on India has to grow and Incidentally the impact created by funds like us is not small and To some extent I thought I'll share with you that Just us as a VC and obviously this will apply to all the VCs in the country Our market cap created is 1% of GDP. This is I mean when I saw these figures I said, hmm That's interesting so the venture and angel community in India in deep tech and technology in New business models and new revenue models is absolutely crucial to the economy and Absolutely crucial to the GDP growth of India and I do not believe that if this deep tech does not come into our Technology at a higher level and deep tech as an integral part underneath if it does not get Companies scaled up in the country then we it would be doubtful Well, whether we'll be headed for something like a 10 trillion economy. So deep neck is absolutely crucial What do we mean by deep tech and let me talk about deep tech opportunities in terms of what are the Opportunities what are the supply chain and ecosystem which we see right now? Fundamentally, we are seeing enormous Opportunities and I say enormous. I don't mean a tsunami but we actually launched a deep tech identification program three years back and Every time we launch we get about 300 to 400 companies coming to us and these are in robotics Horizontal tech which consists of nanotech which consists of nlp, etc. Etc. And these companies in aerospace and outer space Health very large health very large in fact almost 35% of our investments are going into health tech right now Medical devices India imports Something close to 10 billion dollars worth of medical devices. So it's time. They got invented and designed here and manufactured here Agri-tech is a large area In fact, the recent policy of enabling farm to consumer in any state in the country and no restrictions is Absolutely positive for technology to scale right now in automotive and alternative vehicles. It's very important because I think conventional Travel will go down and conventional products will go down in terms of sales vehicles like cars biotechnology and energy So these are the sectors which we are seeing some amount of traction and if you look at the growth mentioned on the right-hand side You know the growth in categories is increasing. It's low right now but the growth in investments in these categories is increasing and We believe that globally it's very large, but we believe that in India will happen larger If you look at the deep-tech ecosystem in the country and this is straight out of a NASCOM report in 2019 Sectors like artificial intelligence Internet of things big data analytics blocked in a year We are have shown in the number of startups not in the number of successful startups but number of startups a pretty healthy growth right now and that's To me a very very important factor But what's very important here is to get these startups to be funded at the seed level and at the angel level because only then Larger funds can come in when the successful happens Is there a supply chain? So we went out and studied It's not that this is brand new in the country if you look at the Specific sectors mentioned here. There are some companies which are already there in the market and this is not a complete list Advanced materials. There are some companies in Metal-based my materials nanostructures smart materials and textile if you look at quantum materials There are some companies a few of them if in the dust field robotics actually there is much more overall in the market space if you look at the whole space tech area and specially You know, I think execution does matter here, but independence of Policy to build companies who can fly satellites rockets from India in outer space into deep sea In terms of vehicles is absolutely absolutely important There are too many restrictions and I think some policy note came out of a month back Let's see how it works, but if that happens, this is a very large area Indian companies should be able There is so much of knowledge here right now Augmented reality. There is some amount of supply chain here and industrial IoT So how these companies are doing actually does not matter. There is a supply chain They are some of them are struggling, but some of them are doing well and that supply chain will only increase as we move forward Why deep tech and an impact? I think there are three very very important reasons Where deep tech is absolutely crucial to the industry first? There are problems in the Indian market space. There are challenges There are these have not been solved before these could be in the whole area of Sectors like health agriculture Education transportation and so on so forth and these could be in supply chain This could be in distribution chain. This could be getting a product from the farmer to the consumer unless these are solved the fundamental problem of Inefficiencies in the Indian economy will remove will remain However, my belief is that these cannot be solved by traditional means these can only be solved by technology and I'm saying only be solved by technology because traditional means if they were solvable they would have been solved by now and We are seeing that increasingly as we go into the market and I'll show you some examples as we move forward so innovative solutions Also in the deep-take area enable an Indian company to go global Whereas a brick-and-mortar smokestack industry company without technology finds it very very difficult to go global and why I think is important to for that company to become a market leader in the country and some of them to go global because scale matters and Digital or otherwise scale matters it builds enormous value market shares Optimal supply chain costs higher profitability Those are important when a deep-tech company grows and going global and going dominant in India makes a big difference So to me these are these are our views on why deep-tech is very important because it's absolutely crucial to Solving problems in the country Let me give you some examples and I'm choosing obviously because of shortage of time a few examples and permit me to take Examples where we are invested because that's most familiar with us We have two companies in the agri-tech space They've already reached two points. What are they solving? They're solving crop productivity and availability of inputs to farmers at a Quality predictability and the right price. They're solving these things How they have reached 2.6 million farmers globally today is 6.7 million acres are managed by these companies within India 1.8 million farmers are today benefiting from technology in the area of AI visual reality and Finding solutions to crop productivity do note that the Indian average farm Is a very small holding so for them to individually do this in terms of crop productivity solutions is not possible okay, so very very massive impact by just two companies and there will be more coming in where you could cover Almost 50 to 60 percent of the farming population Which is dependent on just farm inputs right now in the country. That's 500 million people So effectively and I'm not talking about impact here I'm talking about financial returns by deep technology Solving very real problems in the agri-tech space If you look at healthcare These are some of the companies first cry today deals with Mothers prenatal and postnatal health they deal with babies in terms of health and And so does health planks so does cure fit in terms of supplying fitness at home nutrition at home doctors consulting at home and So-and-so for today they have reached collectively 20 million individuals served and That is amazing and many of them if not all have gone global That's where deep tech deep tech doesn't have to be deep tech can be an e-commerce because the underlying asset is AI So fundamentally these two examples I wanted to share with you because the impact which deep tech has created in Companies is enormous Now let me quickly run through some examples of deep tech solving real-world problems There's a company in the technology based area of education. It's a companion robot patented selling now in 52 countries designed by IIT people in Bombay It is a companion robot which initiates a conversation Are there any competitors in the world? Not really and Again very deep tech Have a look at it. You'll find that this kind of product does not exist in the world and it solves a real problem of parents not spending enough time with children for education and In in the covert time especially very important because children spend a lot of time at home and to that extent They need tools which do not increase the screen time. That's absolutely crucial If you look at healthy find me, it's the world's first artificial intelligence based nutritionist again out of Bangalore and Doing extremely well reaching out to company two countries which are In Asia in Southeast Asia Middle East and now in Latin America If you look at deep fence now with the new Norms of working security is absolutely crucial and security is a priority especially because you have distributed workers Across the world. So it's a fully controlled by civil security solution again coming out of India and Extremely deep tech selling across the world Axio, it's a proprietary plotting technology for wound care very deep tech and Addressing a real challenge in the market space, which basically allows You know wounds to be addressed wounds, you know, basically Blood clotting to happen for injuries where it could lead to even death at a rapid pace If you look at cropping I mentioned to you It's a AI and data led B2B agri-tech program managing in 52 countries almost 7 million acres for crop productivity and that is through satellites based solutions Again a company based out of India applying deep tech to go global Aether biomedical, this is one of our recent investments and Today there are 10 million people across the world who do not have upper limbs They do not have a solution which is intelligent So this is a product advanced biosignal processing and robotics for a Intelligent hand it can lift on the softer side an egg on the harder side can lift kilograms of weight Just like your hand does and it is affordable in pricing So again deep technology as such very interesting color is out of Chemicals color is out of also vegetation and a large part of the supply chain is concentrated in China There are only three companies in the world who extract color out of microbes by applying stressful conditions on them And one of them is based in India a very deep tech company. This is used for paints This is going to be used for textiles harmless very Human-friendly eco-friendly and does not use water Many of you may know that a gene to produce and and to be indigo colored uses thousands of liters of water very harmful to the ecology So here is a company who has a very deep tech and very early right now Who could solve that problem? Today nanomaterials are being used in daily lives and here is a company who has a Anti-bacterial product based on silver which is going to be used as they launch their antibacterial products for hand sanitizers for catheters and so on so forth incidently India Consumes almost three crores worth of catheter three crore catheters per year And that's catheters like urinary catheters or cardiac are the biggest source of infection in hospitals today It's solving a real problem summary so Our conjecture is deep tech is very important to India If it does not grow from India, it will harm the GDP growth. It will harm the market cap growth of the country risk capital creates enormous value by investing in deep tech for investors because this is something which individuals can't do and There is enough deep tech companies very innovative in the country for providing returns especially to rupee investors Incidentally rupee investors must be promoted. There is three four trillion dollars worth of capital in India and That capital tends to come into the angel stage and there is adverse tax treatment for them Compared to public markets and compared to international players. So it's very important for deep tech to survive The tax adversity in the country which has been existing for 30 years right now Must be get going away. It must be because because angels invest in deep tech in real companies Public markets do not create a company Deep tech solves real endemic problems not solvable. Otherwise Innovation is on the rise. We have seen it in the last eight weeks at such a pace. It is unimaginable it facilitates Companies from incubators and and there are enough in the country who are doing this it diversifies the supply chain and Last but not the least deep tech companies while solving real problems in India enable that company to grow enormous value to go global So that's really Sure, thank you very much Mr. Seti, I think that was a wonderful Sort of continuum that you had put together in terms of really explaining what deep tech would mean for us Post-covid and of course going forward. We have lots of questions which have come in for you Let me first sort of ask a question which has been put by mr. Vijay who says that Provis in deep-tech in AI will require focused attention and mentorship from the industry Academy and the government So how can they all be? Working together to make sure it happens. I mean, there's less conflict in terms of adoption of deep technology Yes, absolutely. Can you hear me? Yes, sir So it does require enormous and different scales of collaboration There are incubators in the country private and government. I think that's enough. It does require more capital support It does require more industry support, which I think will start happening. We've got you know centers for research funded by Entrepreneurs like Chris Kupala Krishnan in IIT Chennai in brain research We got institutions like ISC and I think it's a matter of time before it goes down to the next level I don't think we can depend only on the government but government plays a very important role and I think if we can unleash rupee capital in the country Which is tax adverse which is facing tax adversity right now? We will have a lot more at the bottom We we need to start at the bottom where a lot more investments can go into deep tech and risk and that's International guys will not take its it's rupee investors who will take right So, sir, there is also something about Another gentleman has asked about any fund of funds or a government Based deep technology investment fund likely to come up in the future, which is similar to existing funds or funds for Early-stage startups. I mean considering that you know a lot of startups would now Be struck because of lack of capital and capital at least taking a little while to come in In the angel level or the early levels. So I mean what would be a way forward for them I think two things one is there is Sid B as a fund of fund There will be I think NiF is also a fund of fund, but most important is There is enough capital in the country India is India for angel and for seed stage. There's no shortage of country Capital so if there is a great we just made our investment in deep tech Are most recent investing about two weeks back So I don't think there's a shortage of capital for deep tech I think there is a very important factor that grants are needed. That's where government comes in There are many companies who are doing excellent work in research They need grants and the level of grants they need is not high It's like 50 lakhs to one crore, but what's available from grants from the government and that has to come from governments And perhaps institutions which are private in nature Those grants have to be quantumly higher. They're available in a few lakhs not in a few tens of lakhs So I would I would I would sort of go forward and say What's needed right now is a grant mechanism which enables at the early stage such Research to happen, which is very innovative so that the companies can come to a level where angels can invest in and people like us can Invest in those companies. Otherwise those companies will go outside the country We already have cases where grants are given by international grant organizations But one of the conditions is that they must move out of the country and that we must stop Sure, sir Somebody's also asked about how is hyper local delivery. I mean, you know what what deep tech Could you possibly see there in the coming times? I'm sorry. I couldn't hear your question The question is that in hyper local delivery. What is the opportunity for deep tech? I Think it's more towards data right now And in in hyper local delivery you're saying right Yes, sir. Yeah, it's both towards data I we don't know how contactless delivery in the future will evolve but there is IOT opportunities there is contactless there is the opportunity of Drones delivering and not people You know, there's a lot of stuff which is there For example, government has a regulation that drones can deliver let's say blood samples or you know health related products in rural areas but not in urban areas and Rightfully so their concern is safety rather than anything else as such But we must make that open in a city like Delhi if it takes one and a half hours to have plasma Going from one place to the other a drone will deliver that plasma for hyper local Hyper local delivery within 30 minutes or 25 minutes or 15 minutes So it's important and those by the way entrepreneurs exist in the country They have products already in the country. We need to make sure that regulation Where it is required is relaxed and this is the best time to relax it. There is so much need right now for You know Hypothetically plasma delivery to happen in a short time from point A to point B in the urban areas of the country Sure, so we'll take one final question in interest of time So it says there's some some fundamental ships that are required in designing deep tech solutions versus mass Producing or monetizing those solutions. What can they be? What fundamental shifts do you think need to be made? you know deep tech solutions, I Think fundamentally are part of mass Deep tech is not something right. I mean if if you're measuring if you're producing data if you're you know If you want to make a road which does not collapse at the end of the day Whenever there's a monsoon coming and I saw some roll roads being collapsing even if there was no traffic on the road Right, then there is a method to make those roads absolutely Fundamentally correct. I think the issue is not whether what is required the issues deep tech has to be used in our daily lives What happens is that deep tech is not used in our daily lives in making roads in making bridges It's the conventional, you know smoke and stack industry who comes and builds it So how can we make sure that this happens? It's partly regulation partly tendering systems partly Availability of use cases which are there globally which can come to India So can we use technology and deep technology for our daily lives is what matters and as long as That regulatory hindrances go away Okay, that makes a big difference if you want to build a bridge then if you give a contract to a small Contractor who actually does not know how to use technology to build a bridge then the bridge will be built exactly the same way So contracts have to have technology elements inside it Sure, sir So, you know as we close this session I think that was that was a fantastic presentation and there were lots of great ideas that you have shared with us over here today I just wanted to thank you once and also to all our participants who've been in fact You know we've got many more questions, which we cannot take in interest of time the lot of pitches Also, I see in the group that are coming in but again, thank you very much deep tech is certainly the way to go forward and With your support and with the impact that the fund would meet and lots of governments and societies would make deep tech and the Company is coming out of deep tech will probably be the We'll see an emergence of very different kind of Enterprises going forward. Thank you very much. Mr. Seti and thank you to all the participants have joined us here today Thank you so much and everybody stay safe. Look forward to meeting many of you in the future. Bye. Bye. Thank you, sir Would request all the participants to please go to the other stages. We have session a and session b which is already started. Thank you