IIT Madras Unveils Rs 600 Crore Venture Capital Fund For Deep Tech Startups

In a major push to India's indigenous technology ambitions, the IIT Madras Research Park has launched a Rs 600-crore venture capital fund aimed at nurturing deep tech startups across the country.

Called "IITM Unicorn Frontier Fund I," the initiative seeks to bridge the critical funding gap faced by high-risk, high-innovation ventures working in cutting-edge sectors such as semiconductors, space, electric aviation, shipbuilding, advanced batteries, and chemical engineering.

IIT Madras Director Prof. V. Kamakoti told NDTV the fund is designed to support startups during the crucial "valley of death" phase-the period after seed and angel funding when many deep tech ventures struggle to survive due to long gestation cycles. He described this stage as a "valley of hope," stressing that patience and perseverance are essential for founders building core technologies. Crucially, the fund extends its reach to entrepreneurs from all over India, not just those incubated at IIT Madras.

The institute has so far incubated 103 startups, including 51 founded by IIT Madras alumni. Prof. Kamakoti noted that despite India's strong talent pool, deeptech entrepreneurship is yet to become a mainstream campus culture. He pointed to emerging innovations such as the "e-plane" vertical take-off aircraft-capable of flying at speeds up to 160 kmph, operating at low altitudes, and landing in just 5,000 square feet-as examples of the next big breakthroughs that require sustained capital support.

Swapnil Jain, co-founder of electric scooter maker Ather Energy, described the moment as emotional, recalling that his own entrepreneurial journey began on the IIT Madras campus.

In an exclusive interaction with NDTV, Jain observed that while India has produced many unicorns, deep tech unicorns remain elusive due to the ecosystem's historical lack of long-term capital and risk appetite. However, he said the landscape is changing rapidly as more founders choose to build in India, attracted by lower costs, a large market, and improving investor confidence.

Jain predicted that with the right funding and ecosystem support, India could soon produce globally competitive deep tech giants. He added that as more success stories emerge, entrepreneurial risk-taking will increase significantly-a shift he believes is essential for India's next innovation leap.