ValleyNXT Ventures launches Rs 400 crore Bharat Breakthrough Fund for AI, space, and defence startups

ValleyNXT Ventures has launched Bharat Breakthrough Fund–I, a SEBI-registered Category I venture capital fund, aimed at backing seed to pre-Series A startups across deep-tech and technology-first sectors. The fund is targeting a base corpus of Rs 200 crore, with a greenshoe option of an additional Rs 200 crore, taking the total potential size to Rs 400 crore.

The fund will invest in startups operating across space, defence tech, robotics, AI and machine learning, cybersecurity, biotech, sustainability and consumer innovation. It is structured to support companies in the critical phase between validation and scale, a stage where many early ventures struggle.

According to ValleyNXT Ventures, early-stage failures are often driven not only by capital constraints but also by fragmented advice, premature scaling pressure and lack of execution clarity. Bharat Breakthrough Fund–I has been designed to address this gap through what the firm describes as a VC-plus-accelerator model.

The model is powered by ValleyNXT’s MIB framework, which stands for Mentorship, Investment and Business Connects. Through this structure, the firm intends to combine institutional capital with hands-on guidance and market access, rather than offering funding in isolation.

ValleyNXT said it has already supported multiple early-stage startups through its angel network and accelerator-led investment approach. The firm has evaluated over 5,000 deals and invested in more than 10 startups to date. It said its approach has focused on enabling founders with capital, structured mentorship and strategic business connections to accelerate growth.

With Bharat Breakthrough Fund–I, the firm plans to institutionalise this strategy under a SEBI-regulated structure and deepen its engagement with early-stage founders. The fund’s leadership team comprises Dr. Nikhil Agarwal, Dr. Madhu Vasepalli, Anand Saklecha and Suresh Goyal.