Riceberg Ventures Unveils $20 Million Fund to Accelerate SpaceTech and AI Startups

Riceberg Ventures, a global early-stage venture capital firm, has introduced a $20 million fund to back deeptech startups across sectors such as space technology, AI, cybersecurity, robotics, health tech, and renewable energy. The fund is designed to address the funding shortfall in these high-growth areas by providing early-stage investments to help startups expand and innovate. Riceberg Ventures plans to support 25-30 companies, with an average investment of $500,000 per startup.

In addition to providing capital, the fund offers hands-on support to portfolio companies, helping them achieve product-market fit (PMF). Backed by a consortium of Limited Partners (LPs), Riceberg Ventures leverages its global network of deeptech business and technical leaders to assist startups in navigating the challenges of growth and development.

Riceberg Ventures, co-founded in 2023 by Ankit Anand, Mredul Sarda, Shubham Raj, and Lino Gandola, focuses on investing in deeptech startups across the globe. The fund will primarily focus on sectors such as space technology, cybersecurity, artificial intelligence, robotics, health tech, life sciences, novel energy, semiconductors, and quantum computing.

The firm emphasizes that it targets startups developing foundational technologies that require significant research and development to address complex global challenges. Anand, a physicist and DeepTech entrepreneur, noted that deeptech has long been leading industry-defining innovations, and the firm began its journey before the term gained widespread recognition. “We aim to support founders working on breakthrough technologies that have the potential to transform industries,” he added.

Riceberg Ventures is particularly excited about the growth opportunities in space technology, highlighting the recent reduction in space launch costs and the positive impact of India’s Space Policy 2023. This policy outlines the roles of government bodies such as ISRO and NSIL, creating a favorable environment for private enterprises. Anand pointed to entrepreneurs from ISRO and institutions like IITs and IIST as a key source of talent, driving the sector’s innovation and growth.

With a strong presence in Europe, the US, and India, Riceberg Ventures also brings value to its portfolio companies through access to a global network of leading scientists, experts, and venture capitalists. 

The firm aims to facilitate co-investments and follow-on funding, providing startups with the strategic support and infrastructure needed to scale. Mredul Sarda, another founding partner, highlighted that the firm has already co-invested with one of the largest VC funds globally, further expanding the opportunities available to its portfolio companies.

Riceberg Ventures has also partnered with E2MC Ventures and operates KickSky, India’s first dedicated spacetech accelerator. The accelerator recently launched its second cohort, set to go live in January 2025. Through KickSky, Riceberg Ventures aims to support early-stage spacetech startups, providing them with the infrastructure and resources needed for growth and success.

Riceberg Ventures has already made investments in promising startups, including space logistics company Manastu Space and biotech firm Signatur Biosciences. The firm is keen to address the challenges faced by deeptech startups, which often struggle to secure funding due to their lengthy R&D and incubation periods. 

Government initiatives, such as the Rs 10,000 crore Startup Fund of Funds and the Rs 50,000 crore National Research Foundation, have supported the sector, but a funding gap remains. Riceberg Ventures seeks to bridge this gap by providing essential capital and support to empower Indian researchers and entrepreneurs.

Lino Gandola, a founding partner at Riceberg Ventures, emphasized the Indian diaspora, which has been instrumental in groundbreaking innovations like Google and OpenAI. Despite this, many Indian founders have faced systemic barriers that hinder their access to early-stage funding. Gandola believes that by offering targeted support and resources, Riceberg Ventures can help these entrepreneurs take center stage in global innovation, driving the next wave of transformative technologies.