Early-stage artificial intelligence startups in India are securing term sheets in as little as ten days to two weeks, down from about a month previously, as investors race to back strong AI teams, industry executives told Reuters. Seed rounds that once took three to four months are now closing in three to five weeks for the strongest teams.

The acceleration comes as AI funding in India surges: from $340 million in 2020 to $1.1 billion in 2025 and $1.4 billion so far in 2026, according to data platform Tracxn. Investors say rapid advances by global AI companies can quickly make a startup's edge obsolete, forcing faster decisions.

'At seed, what took three to four months a couple of years ago is now closing in three to five weeks for the strongest AI teams,' said Kushal Bhagia of All In Capital. Larger growth-stage rounds still take longer, and early teams with unproven products face slower timelines, executives added.