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IIT Madras Launches ₹200 Cr Deeptech Startup VC Fund

IIT Madras, one of India’s premier institutions, has announced a groundbreaking ₹200 crore venture capital fund aimed at supporting early-stage and deeptech startups. The announcement was made at Sangam 2025, the institute’s flagship innovation and alumni summit held in Bengaluru.

The new fund, named the IITM Alumni Fund, is set to redefine how academic institutions contribute to India’s startup ecosystem.


🔍 Why This Move Matters for Indian Startups

India is witnessing a surge in deeptech innovation, and this alumni-driven VC fund fills a crucial funding gap for startups working in emerging technologies such as:

  • Artificial Intelligence (AI)

  • Robotics

  • Quantum Computing

  • SpaceTech

  • Biotechnology

The IITM Alumni Fund is a strategic initiative to provide early capital and scale support to such ventures, particularly those emerging from the IIT Madras incubation ecosystem.


💼 Key Features of the IITM Alumni Fund

  • Total Corpus: ₹200 crore (approx. $24 million)

  • Funding Stages: Pre-Series A and Series A

  • Focus Area: Deeptech, AI, hardware, and scalable IP-based startups

  • Target Startups: Primarily ventures incubated at IIT Madras

  • Structure: Operates as an independent legal VC entity with standard governance norms

According to Prof. V. Kamakoti, Director of IIT Madras:

“This fund is a way for our alumni to give back by investing in innovation. It also fuels our goal of launching 100 deeptech startups every year under the Startup Shatam initiative.”


🌱 A Proven Track Record of Startup Success

IIT Madras has built one of India’s strongest startup support ecosystems. Here’s a look at its achievements:

  • 500+ startups incubated, valued over ₹50,000 crore ($6 billion)

  • Notable support arms:

    • Pravartak Technologies Foundation (specializing in AI and cybersecurity)

    • Centre of Excellence in Sports Science and Analytics (CESSA)

  • Funding support: Up to ₹5 crore per startup in exchange for equity

  • Access to labs, mentors, seed funding, and corporate partnerships

This infrastructure makes IIT Madras a launchpad for high-impact startups.


🚀 Sangam 2025: Deeptech, AI, and VC Synergy

The Sangam 2025 summit held in Bengaluru attracted over 500 stakeholders:

  • Alumni leaders and entrepreneurs

  • Global investors and venture capitalists

  • Policymakers and tech experts

Highlights included:

  • Keynote speeches from Aparna Chennapragada (Microsoft) and Srinivas Narayanan (OpenAI)

  • A pitchfest featuring 20 AI and deeptech startups

  • Live investor interaction with over 250 venture capitalists and angel networks


🏛️ Government’s Backing of Deeptech Innovation

Union Minister Piyush Goyal reiterated the government’s deeptech commitment:

  • ₹10,000 crore second tranche to the Fund of Funds for Startups

  • ₹1 lakh crore ($12 billion) zero-interest, 50-year loan to the Department of Science and Technology

This support provides deeptech founders the capital runway and R&D flexibility needed for scale.


📢 Final Thoughts: A New Chapter in India’s VC Landscape

The IITM Alumni Fund is a pioneering model—one that merges academic innovation with venture capital discipline. It not only democratizes access to early-stage funding but positions IIT Madras as a catalyst for India’s next wave of deeptech unicorns.

👉 Stay updated with the latest Indian startup funding news, trends, and founder insights at Innovent Blog – your go-to platform for innovation and entrepreneurship.

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