Startup funding falls below $100M; Deeptech startups look to go global

Dear Reader,

The AI boom is fuelling a datacentre expansion, but local communities are pushing back. In the UK, residents are raising concerns about noise, pollution, and blocked sunlight, putting the spotlight on the environmental costs of powering the AI revolution. With hundreds of facilities planned across the UK, the debate over who benefits and who bears the cost is growing.

Meanwhile, two critical PHP vulnerabilities exposed millions of websites and servers to potential cyberattacks. The flaws, undetected for years, triggered an urgent patching exercise, with experts warning that AI could make it easier to uncover and exploit similar weaknesses.

On the AI front, Block, a fintech company co-founded by Jack Dorsey, has unveiled Dessa, a voice model that captures human nuances such as laughter and pauses. It can listen and speak simultaneously and run on consumer-grade hardware, but is being tested by AI safety researchers before wider release. 

In other news, five companies are set to launch IPOs between October 26 and 29, aiming to raise nearly ₹2,600 crore, while Swara Baby Products, backed by FirstCry parent Brainbees Solutions, is among the other companies in the IPO pipeline and is expected to announce its launch plans by November 5. The upcoming issues come amid strong primary-market activity, with 104 companies raising over ₹1.4 lakh crore through IPOs so far in 2026.

In today’s newsletter: 

• VC funding falls below $100M amid lack of big deals 
• Experts urge deeptech startups to go global  

Here’s your trivia for today: What two-word term describes the total greenhouse gas emissions associated with a person, product or activity? (Scroll down for the answer)

Funding

VC funding falls below $100M amid lack of big deals

Venture capital funding into Indian startups fell sharply in the third week of October, as deal activity slowed and large-value transactions remained scarce. Startups raised $96 million across 15 deals, down from $180 million the previous week. With large funding rounds still limited, the ecosystem will be hoping for a revival in 2027. 

Key takeaways: 

• Indian startups raised $96 million across 15 deals, marking the eighth time this year that weekly VC funding has fallen below the $100 million mark.
• Even  Healthcare raised $50 million from Khosla Ventures and Alpha Wave, accounting for the largest deal of the week.
• There have been just 16 funding deals worth $100 million or more in 2026 so far, highlighting the challenges startups face in securing large cheques.

TechSparks

Experts urge deeptech startups to go global

India’s deeptech ecosystem is gaining momentum, backed by improving government support, policy initiatives, and access to capital. However, talent shortages, funding gaps, and weaknesses in the manufacturing ecosystem remain challenges. At TechSparks 2026, industry experts said Indian deeptech startups must build self-belief and pursue global markets to scale.

Key takeaways: 

• Government initiatives and funding are creating a more enabling environment for deeptech startups, but access to patient capital remains a challenge.
• Startups need stronger engineering talent and a clearer focus on building foundational capabilities to strengthen India’s deeptech ecosystem.
• Government procurement can provide an initial boost, but startups must look beyond India to build globally competitive deeptech businesses.

News & updates

• Kannadiga jobs: Karnataka Chief Minister D K Shivakumar said the state government would take action if private institutions were found to be deliberately sidelining Kannadigas in hiring.
• Starlink Restrictions: Elon Musk confirmed that SpaceX restricted Ukraine’s Starlink service, after Ukrainian officials said connectivity issues had been resolved. He accused Ukraine of breaching its terms of service by using Starlink for military activity, while denying responsibility for a simultaneous issue with the US military’s Starshield system.

What you should watch out for

• Black Hat, a global information security event series known for its technical training, briefings, and cutting-edge research, is coming to India for the first time in Bengaluru from October 27 to 30, 2026.

• GitHub Universe 2026, GitHub’s flagship developer event focused on AI, coding agents, and the future of software development, will take place on October 28–29, 2026, in San Francisco, California, with online participation also available.

What two-word term describes the total greenhouse gas emissions associated with a person, product or activity? 

Answer: Carbon footprint

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