Why US Venture Capitalists Are Eyeing Indian Startups More Than Ever

India is rapidly emerging as a major global startup hub, attracting growing attention from U.S. investors. Analysts predict the country could produce 1,000 unicorns in the next 20 years, thanks to its large, youthful population, tech talent, and increasing domestic investment. Venture capitalist Aditya Mishra, who leads BAT VC, a $100 million fund investing in AI-first startups, believes this rise has been decades in the making.

Once reliant on foreign capital, India’s financial landscape has shifted, with 80% of IPO funding now coming from domestic sources. Brokerage accounts have seen massive growth, creating a more liquid market. India launched 338 IPOs in 2024 alone, raising nearly $21 billion and leading the world in public listings.

The startup ecosystem has matured beyond IT outsourcing, evolving into a global player in AI, robotics, fintech, logistics, and deeptech. Engineers from global tech giants are founding startups that solve real-world, complex problems, fuelling global potential.

Interest from U.S. venture capital is increasing, driven by “China-plus-one” investment strategies. Mishra’s BAT VC backs both U.S. startups entering India and Indian startups scaling globally, aiming to deliver greater returns through this dual-market approach.

India’s diversity and complexity make its startups uniquely prepared to scale internationally, having already built solutions for a fragmented and multifaceted domestic market. Despite challenges like governance and regulation, the growth potential is immense. Experts foresee up to $5 trillion in startup value emerging in the coming decades.

The next two decades of tech innovation may well be led by India, making it an investment opportunity too large to ignore.

India startups,IPO boom,AI innovation,Venture capital,Unicorn growth