Venture capitalists are increasingly drawn to early-stage deeptech startups, particularly in sectors such as aviation, biotechnology, and precision manufacturing. Notable companies like Parsec Aerospace are in talks for a $4 million funding round with Lightspeed Venture Partners, while Dognosis, which leverages dogs' olfactory abilities for disease detection, recently closed a funding round between $4 million and $6.5 million with participation from Accel Partners. Despite the enthusiasm for early-stage investments, growth-stage funding has seen a decline, with only $56 million raised across nine deals in 2026 so far. Investors are optimistic, with Shailesh Lakhani, former managing director at Peak XV, noting that many founders are emerging in deeptech, and the current investment climate is favorable for securing better deals. Indian venture capital firms are also looking beyond their borders for AI investments, particularly in the United States, where a larger pool of AI startups is developing. The overall trend indicates a strategic shift towards smaller transactions in frontier technology, which could signify a maturation of the investment ecosystem.