Celesta Capital Aims to Invest in Indian Semiconductor Startups
- ByStartupStory | July 18, 2023
US-based venture capital firm Celesta Capital, with funds totaling approximately $1 billion, plans to invest in 10-15 Indian startups engaged in semiconductor design and deep technology, according to senior partner Gani Subramaniam. The firm’s focus on deep-tech and semiconductor design aligns with the growing potential in India’s technology sector.
Subramaniam highlighted the availability of risk capital in India and the government’s support for sectors like semiconductors. He emphasized India’s advantage in tapping global competitive businesses and catering to its own demand with technology solutions. Celesta Capital aims to invest an average ticket size of $7-$15 million in startups over the next few years.
With a strong base of chip designers, India ranks second only to the US in this field. Subramaniam pointed out the presence of experienced chip design companies like Qualcomm and Intel, which contribute to the country’s 40 years of chip design expertise.
Regarding investment plans, Subramaniam indicated that Celesta is interested in bridging the gap at later stages of the business cycle, rather than focusing solely on early-stage startups in the semiconductor space. The firm values a suitable team with experience, openness to acquire global talent, and clarity on chip production locations when considering investments in this sector.
Responding to concerns about valuations and corporate governance, Subramaniam emphasized the fairness of valuations in the deep technology space, where Celesta Capital primarily operates. He acknowledged the longer revenue-earning timeline associated with deep-tech investments but expressed confidence in the sector’s potential.
Celesta Capital has a diverse portfolio of investments in both the US and India, with 15% of its total investments focused on the Indian market. In India, the firm has previously invested in companies such as Aura Semiconductors, Arzooo, Stellapps, Pixis, Connect, and Heal.
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