Deep tech-focused early-stage venture fund pi Ventures has raised $8 million led by UK-based development finance institution British International Investments (BII). The investment comes after pi Ventures announced the initial closing of its second fund with $40 million earlier this year.

The fund is supported by the Japan-India Digital Innovation AIF (NIDIA), Accel and entrepreneurs and family offices such as Binny Bansal, Varun Alagh, Samit Shetty, Rajesh Ranavat, Vikram Kailas, Anupam Mittal, Hemendra Kothari, Hitesh Oberoi, Ullas Kamath, Deep. Kalra is a senior leader at companies such as IBM, Facebook, and Google.

The second fund launched in March 2021 with a base target of $75 million, including a greenshoe target of $100 million.

“There is still a huge funding gap for early-stage technology ventures in India. Our recommitment to pi Ventures’ second fund addresses this gap and will support start-ups with the potential for a disproportionate impact,” said Director, UK International Investment managing director and head of India Manav Bansal said.

The firm plans to invest in startups focused on disruptive artificial intelligence (AI) and other forms of deep technology, including but not limited to blockchain, space technology, biotechnology and materials science.

pi Ventures aims to continue its focus on early-stage (seed/pre-Series A/Series A) investments through this fund and has invested in five startups to date: ImmunitoAI, Ottonomy.IO, Silence Laboratories, and Preimage. The fund plans to invest in 20 to 25 such startups over the next two to three years, the company said in a statement.

Chirantan Patnaik, director of venture capital at BII, added: “The fund continues to focus on investing in AI and deep tech-led business models that will help foster technological innovation in key development areas.”

Founded by Singhal in 2016, pi Ventures closed its first $30 million fund in 2018, which it used to back 15 deep tech startups, including Niramai, Pyxis, Wysa, Agnikul, and Locus, among others.