IIT Madras plans to launch Rs 200 crore VC fund to support early-stage startups

The Indian Institute of Technology Madras (IIT Madras) is planning to launch a Rs 200 crore venture capital (VC) fund aimed at supporting early-stage startups, especially in the deeptech space. The announcement was made at Sangam 2025, the institute’s annual innovation and alumni summit held in Bengaluru last week.

The new fund, called the “IITM Alumni Fund,” will focus on pre-Series A and Series A investments, with priority given to ventures incubated within the IIT Madras ecosystem. It will operate as an independent legal entity and follow conventional venture capital structures, including robust governance and due diligence processes.

Most of the capital is expected to come from IIT Madras alumni and high-net-worth individuals. “In our first fund, we aim to raise Rs 200 crore through alumni contributions,” said Prof. V. Kamakoti, Director of IIT Madras. “This is an opportunity for our community to back strong startups and grow together. It also supports our vision of launching 100 deep-tech startups every year under the Startup Shatam programme.”

The institute has already incubated over 500 startups, collectively valued at more than Rs 50,000 crore (approximately $6 billion). Its incubation ecosystem includes specialized programs such as the Pravartak Technologies Foundation and the Centre of Excellence in Sports Science and Analytics (CESSA), which provide capital, advisory services, and physical infrastructure. IIT Madras typically infuses up to Rs 5 crore per startup in exchange for equity.

The two-day Sangam 2025 summit, held on July 4–5, drew over 500 participants, including alumni, faculty, investors, and students. Highlights included keynote addresses by Microsoft’s Aparna Chennapragada and OpenAI’s Srinivas Narayanan, both IIT Madras alumni. The summit emphasized themes of innovation, AI, and entrepreneurship, and featured a startup pitchfest showcasing 20 deep-tech and AI ventures to over 250 venture capitalists and angel investors.

The event also featured a high-profile address by Piyush Goyal, India’s Minister of Commerce and Industry, who reiterated the government’s commitment to building a robust deep-tech ecosystem. Goyal noted that the government had committed a second Rs 10,000 crore tranche to its Fund of Funds, specifically earmarked for deep-tech innovation. He also referenced a recent Cabinet decision to allocate $12 billion (Rs 1 lakh crore) to the Department of Science and Technology as a “zero-interest 50-year loan” designed to offer flexible capital support for emerging technologies.

“We’re at the cusp of an entrepreneurship revolution at IITM,” said Prof. Ashwin Mahalingam, Dean of Alumni and Corporate Relations. “This fund—driven by alumni and designed for high-impact startups—is the kind of focused support that can help us scale these innovations into global ventures.”