Accel and Prosus Ventures have jointly selected six early-stage startups for their inaugural India cohort. The firms are intentionally backing ventures tackling ambitious, undefined problems in sectors like healthcare, climate, space tech, and longevity – areas where success isn’t guaranteed and progress is hard to measure by conventional metrics. This move signifies a willingness to fund projects that go beyond typical venture capital playbooks.
Challenging the Status Quo
The program, announced in October, stands out because it prioritizes backing companies pursuing complex, long-term scientific breakthroughs over those promising quick, predictable returns. From a pool of over 2,000 applicants, the chosen startups reflect a commitment to supporting innovation where the market doesn’t yet exist.
This approach is critical because many transformative technologies require years of research and development before they become commercially viable. By focusing on “off-the-map” ideas, Accel and Prosus are positioning themselves to capture opportunities in emerging fields that mainstream investors might overlook.
The Selected Startups
The cohort includes:
- Praan: Developing indoor air purification systems with automated controls.
- QOSMIC: Building optical communication for faster data transfer between satellites and Earth.
- EtherealX: Creating reusable orbital launch vehicles to reduce the cost of space access.
- Dognosis: Leveraging canine scent detection alongside AI to diagnose cancer from breath samples.
- Ferra: Designing home-based strength training systems that adapt to a user’s performance over time.
- An anonymous startup: Developing brain-computer interfaces for direct human-machine communication.
Investment Structure and Philosophy
Accel and Prosus are co-investing in each startup, matching investments ranging from $500,000 to $2 million. Crucially, the firms are using a deferred equity structure to minimize early dilution for founders. This means founders give up equity at a later stage, allowing them to retain control during critical R&D phases.
“More than capital, they require time to make those breakthroughs,” says Pratik Agarwal, partner at Accel.
This model acknowledges that these ventures won’t follow linear growth paths. Progress depends on achieving key technical milestones, not on month-over-month revenue increases. According to Ashutosh Sharma, head of India ecosystem at Prosus, this patient capital approach is essential for startups with long development cycles.
Why This Matters
The decision by Accel and Prosus to back these high-risk ventures highlights a broader trend in venture capital: a growing recognition that breakthrough innovations often require unconventional funding models and long-term commitment. By shifting away from short-term metrics, the firms aim to unlock opportunities in areas where traditional investment criteria fall short.
This could signal a more sustainable approach to funding deep tech, where patience and scientific rigor are valued over immediate profitability.
