IIT Madras has announced the first close of its deep-tech venture capital fund, with investments from its alumni crossing Rs 150 crore, as the institute seeks to strengthen funding support for technology-intensive startups.
The IIT Madras Unicorn Frontier Fund I, launched by IIT Madras Research Park and Unicorn India Ventures, is targeting a corpus of Rs 600-1,000 crore. The fund will provide patient capital to deep-tech startups emerging from or supported by the IIT Madras ecosystem, as well as selected startups from the wider Indian deep-tech ecosystem.
IIT Madras Director Prof V Kamakoti announced the startups selected to receive funding at Sangam 2026, the annual conference of the IIT Madras Alumni Association (IITMAA), in Bengaluru on September 26.
The fund is intended to address the longer technology development and commercialisation cycles faced by deep-tech startups, with a focus on capital, technical mentorship and access to institutional and industry networks.
“Viksit Bharat 2047 as envisaged by Hon’ble Prime Minister will be a Startup Nation. This VC Fund is a humble attempt by IIT Madras and Unicorn India to support promising startups cross their respective valleys of Hope and rise up to become an Unicorn,” Kamakoti said.
Prof Ashwin Mahalingam, Dean (Alumni and Corporate Relations), IIT Madras, said alumni participation would allow graduates to contribute to the growth of the institute’s innovation ecosystem through investment.
“Initiatives such as the VC fund provide an opportunity for our alumni to go a step beyond contributing to IIT Madras and actively invest in the growth and success of its innovation ecosystem,” he said.
He added that the fund could help address the patient-capital gap faced by deep-tech startups and support India’s transition towards a product-led innovation economy.
Focus on deep-tech startups
The fund will focus on IP-led and engineering-intensive startups, including companies working in areas such as robotics, space technology, defence technology and semiconductors.
A significant portion of the portfolio is expected to come from the IIT Madras ecosystem, with the remaining investments sourced from the broader Indian deep-tech ecosystem.
The majority of investments will target early-stage companies at Technology Readiness Levels (TRL) 3-4, when technologies are moving from proof-of-concept towards validation and development.
Around 60% of the fund corpus is expected to be deployed towards building the portfolio, with the remainder reserved for follow-on investments in existing portfolio companies. The fund has been structured with a 10+2-year tenure, reflecting the longer development timelines typically associated with deep-tech ventures.
Natarajan Malupillai, Group CEO, IIT Madras Research Park & Incubation Cell, said scaling deep-tech startups would require patient capital alongside research capabilities and industry partnerships.
“This 600+ crore IITM Unicorn Fund will support 24-30 companies that will support India’s growth agenda and also win global acclaim,” he said.
The initiative builds on IIT Madras’ announcement at Sangam last year of its plans to create a dedicated venture capital fund for deep-tech startups. The institute said the fund would work closely with its research, innovation and entrepreneurship ecosystem to help technologies transition into scalable products and companies.
Sangam 2026, the seventh edition of IITMAA’s annual conference, is being held in collaboration with IIT Madras around the theme ‘Atmanirbhar Bharat – Building a Self-Reliant India’.
