IIT Madras Launches Rs 200 Crore VC Fund to Boost Deeptech Startups

Indian Institute of Technology (IIT) Madras has unveiled a new Rs 200 crore venture capital (VC) fund, the IITM Alumni Fund, to support early-stage startups, especially deeptech companies. This project was announced during the Sangam 2025 event in Bengaluru and reflects the dedication and passion of IIT Madras to develop new companies and unicorns that will come out of its strong innovation ecosystem.

The IITM Alumni Fund will mostly be in pre-Series A and Series A deals, on startups that originated through the institute Incubation Cell, which has already incubated more than 500 companies whose total valuation is over Rs 50,000 crore. As the world of startups is increasing exponentially in number, the institute expects additional number of unicorns in the next several years and also wishes their scaling up by making strategic investments.

• IIT Madras Launches Rs 200 Crore VC Fund to Power Deeptech Startup Growth
• IITM Alumni Fund Targets Early-Stage Innovation in AI, Biotech, and Climate Tech
• Rs 200 Crore IIT Madras VC Fund Aims to Create Next Wave of Indian Unicorns

The fund is to be structured as an independent legal entity with all regular VC process and likely to attract major contributions by IIT Madras alumni and high net worth individuals (HNIs). This alumni focused strategy builds on the wide network of the institute to offer more than just capital, but also mentorship and industry introductions to deserving ventures.

At Sangam 2025, Union Minister Piyush Goyal said the fund would support the startup ecosystem in the country, complementing other government efforts such as the Rs 10,000 crore Fund of Funds for Startups and Rs 1 lakh crore R&D and Innovation Scheme. 

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The API investment fund is also focused on deeptech, in line with the Indian drive towards innovation in AI, climate tech, health, biotech, and semiconductors. Examples of startups such as Folium Sensing (which took home Rs 3 lakh at Sangam 2025 with its infrastructure technology that works in real-time) are the sort that the fund is trying to fund. The IITM Alumni Fund, supported by financial resources and the incubation experience of IIT Madras, can become a movement to trigger radical expansion of the Indian startup ecosystem.