IIT Madras Launches $71M Fund for Deep Tech Startups

Indian Institute of Technology Madras is betting big on the next generation of tech innovators with a new ₹600 crore (about $71 million) fund designed to keep breakthrough startups alive during their most vulnerable phase.

The IIT Madras Unicorn Frontier Fund I, launched in partnership with Unicorn India Ventures, will support over 25 startups working on cutting-edge technologies. Think robotics, space exploration, defense systems, and semiconductor chips.

What makes this different? The fund specifically targets what investors call the "valley of death," that brutal stretch between when a startup launches and when it finally starts making money. Most promising companies die in this phase, not because their ideas are bad, but because they run out of cash before proving their concept works.

IIT Madras Director V. Kamakoti said the fund should be operational within three to four months after regulatory approvals. Any startup in India can apply for funding, not just those incubated at IIT Madras, opening doors for innovators nationwide.

The fund will operate for 10 to 12 years with an eventual goal of helping startups reach IPO level. With a potential ₹400 crore expansion built in if demand is high, this could become one of India's largest deep tech investment vehicles.

The Ripple Effect

This announcement signals a broader shift happening in India's startup ecosystem. Swapnil Jain, who co-founded electric vehicle company Ather Energy a decade ago, noted that investors are finally moving their attention from e-commerce to deep tech, the kind of innovation that could solve humanity's biggest challenges.

Bhaskar Majumdar from Unicorn India Ventures shared an encouraging trend: nearly two-thirds of the 50 companies his firm has backed come from smaller tier two and tier three cities, not just major metros. This fund could amplify that pattern, bringing opportunity to talented engineers and entrepreneurs wherever they live.

IIT Madras itself is walking the walk. The institute is developing an electric plane capable of vertical takeoff and landing in just a 5,000 square foot space, perfect for air ambulance services in crowded cities. Kamakoti expects it to reach commercial production within a year.

The fund will tap into IIT Madras's network of 70,000 alumni worldwide, bringing together capital, expertise, and mentorship. The institute's new School of Innovation and Entrepreneurship will launch programs soon to strengthen the support ecosystem even further.

India's deep tech revolution just got the fuel it needs to take flight.