Industry leaders say long development cycles and high capital costs require patient funding to scale advanced defence and space technologies
Innovators working in satellite systems and missile-related technologies have highlighted the urgent need for risk-taking and patient investors to support the growth of India’s strategic technology ecosystem. Founders, researchers, and industry experts say traditional funding models often fail to meet the unique demands of these sectors, which involve long development timelines, high research costs, and strict regulatory oversight.
Speaking at recent industry interactions and policy forums, technology leaders noted that while interest in defence and space startups has increased, access to suitable capital remains a major challenge. Unlike consumer technology or software startups, satellite and missile technology firms typically require years of testing, validation, and regulatory clearances before generating revenue.
High risk, long timelines deter conventional investors
Experts explained that many private investors prefer faster returns, making them hesitant to invest in advanced aerospace and missile-related ventures. These companies often need sustained funding through multiple stages of research, prototyping, and field trials.
Industry executives said that without investors willing to accept higher risks and longer payback periods, several promising technologies struggle to move beyond the prototype stage. This funding gap, they warned, could slow India’s progress in critical areas such as space-based communications, surveillance systems, and advanced defence platforms.
Growing opportunity amid policy support
The call for risk-taking capital comes at a time when the government has been encouraging private participation in defence and space technologies. Recent policy reforms have opened more opportunities for startups to work with public sector units, defence agencies, and space institutions.
Innovators said these policy changes have improved market access but must be matched with strong financial backing. They added that dedicated funds, strategic investors, and long-term institutional capital could play a key role in supporting companies working on complex and sensitive technologies.
Role of institutional and strategic investors
According to industry observers, institutional investors, sovereign funds, and strategic corporate investors are better positioned to support satellite and missile technology firms. Such investors can provide not only capital but also technical expertise, supply chain access, and credibility with government clients.
Startup founders also stressed the importance of blended funding models, combining government grants, private equity, and venture capital tailored for deep and strategic technologies.
Building a sustainable innovation ecosystem
Experts believe that encouraging risk-tolerant investment is essential for building a self-reliant and competitive aerospace and defence ecosystem. They noted that countries with advanced space and missile capabilities have historically relied on long-term public and private investment partnerships.
As India seeks to expand its presence in space technology and strengthen domestic defence manufacturing, innovators say investor mindset will be as critical as policy support. Without sustained and patient capital, they caution, the country may struggle to fully commercialise its technological potential in these strategic sectors.
Last Updated on: Monday, February 9, 2026 7:35 pm by Economic Edge Team | Published by: Economic Edge Team on Monday, February 9, 2026 7:35 pm | News Categories: Technology
About The Author
