IIT Madras to Launch ₹200 Crore VC Fund Backed by Alumni to Fuel Deep-Tech Startups

From labs to launchpads, IIT Madras is putting serious capital behind innovation. The premier institute has announced plans for a ₹200 crore venture capital fund—called the IITM Alumni Fund—focused on supporting early-stage startups, particularly in the deep-tech space. The move marks a bold step toward turning India’s top engineering ideas into scalable ventures.

Backing Innovation from Within

Announced during Sangam 2025, the institute’s annual innovation summit, the fund will prioritize pre-Series A and Series A investments in startups incubated at IIT Madras. According to Director Prof. V. Kamakoti, the capital will come largely from alumni and high-net-worth individuals eager to give back while backing next-gen founders.

“This is an opportunity for our community to back strong startups and grow together,” Kamakoti said, tying it to the institute’s ambitious Startup Shatam program that aims to launch 100 deep-tech ventures every year.

A Robust Incubation Ecosystem

IIT Madras isn’t new to the startup game. It has already incubated 500+ startups valued at over ₹50,000 crore (~$6 billion), supported through initiatives like the Pravartak Technologies Foundation and CESSA. These programs offer capital, infrastructure, and mentorship—often with up to ₹5 crore infused per venture in exchange for equity.

With this new fund, IITM is formalizing its startup support under an independent legal structure, using standard VC practices and governance models to attract serious investors and ensure due diligence.

From Pitchfest to Policy

Held in Bengaluru on July 4–5, Sangam 2025 drew over 500 attendees and featured startup pitches from 20 AI and deep-tech ventures. Among the keynote speakers were Microsoft’s Aparna Chennapragada and OpenAI’s Srinivas Narayanan—both IITM alumni now shaping global tech.

Adding weight to the occasion, Commerce Minister Piyush Goyal addressed the summit and reaffirmed the government’s push toward deep-tech development. He highlighted the second ₹10,000 crore tranche for India’s Fund of Funds and a newly approved $12 billion (₹1 lakh crore) zero-interest loan to support frontier technologies.

A Blueprint for India’s Startup Future?

This alumni-led fund isn’t just about cash. As Prof. Ashwin Mahalingam put it, it’s about focused, mission-driven support. “This fund—driven by alumni and designed for high-impact startups—is the kind of support that can scale innovations into global ventures,” he said.

For deep-tech founders in India, especially those connected to IIT Madras, this fund could be a launchpad with both capital and credibility—a rare combination in the early stages of company-building.