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The pace of venture capital (VC) funding for high-tech startups has remained a bit slow and weak in the Indian tech ecosystem for some time now. Due to global uncertainties and cautious attitude of investors, early stage startups are facing a lot of struggle in raising the desired capital. However, amid the expansion of the Semiconductor Mission in the country and the buzz of the much-awaited ‘Semicon 2.0’, the question is now gaining momentum that will the fate of deep-tech and hardware startups change with the arrival of this new policy? Funding is a big challenge for high-tech and deep-tech startups. At present, investors have started keeping a close eye on the fundamentals, revenue model and profitability of any new venture before investing money in it. This is the reason why apart from Software-as-a-Service (SaaS) and consumer internet, those startups which are to high-tech sectors like hardware, semiconductor, AI and robotics are facing difficulties in getting funding. Research and development (R&D) in these sectors require huge amounts of capital, and weak VC funding has put a brake on the growth of these companies. Government’s Semiconductor Mission and Expectations from ‘Semicon 2’ Amidst this disappointment, the Indian Government’s ambitious Semiconductor Mission has emerged as a big hope for the tech industry. To make the country a global manufacturing hub, the government is now preparing to launch the next phase of ‘Semicon India Programme’ i.e. ‘Semicon 2’. Experts believe that in this second phase, financial assistance, incentives and infrastructure will be provided on a large scale not only to chip manufacturers but also to innovative startups based on design, fabrication and chips. Will VC funding bring new life to the stalled market? As the government is strengthening the chip design and electronics manufacturing ecosystem, the sector is increasingly attracting the attention of global and domestic investors. Experts estimate that after ‘Semicon 2’ comes on the ground, the perspective of VC and private equity funds may change completely. With the government itself promising huge investment and support in the sector, venture capitalists will also come forward to take bigger risks in high-tech and deep-tech startups, which may lead to a new surge in funding which has been lying dormant for a long time.