Indian Institute of Technology Madras has unveiled plans to launch a Rs 200 crore VC fund to support early-stage startups, particularly those incubated within its innovation ecosystem. Named the IITM Alumni Fund, this venture capital initiative marks a first in Indian academia – leveraging alumni contributions to drive investments into deep-tech ventures at the pre-Series A and Series A levels, reported Indian Startup News.
The fund will be set up as a separate legal entity to ensure robust governance, transparent financial operations, and standard venture capital practices. Capital will be drawn from IIT Madras’s global alumni base, along with high-net-worth individuals and institutional partners. The announcement was made during the Sangam 2025 alumni event held in Bengaluru, with the institute’s leadership positioning it as a step toward sustainable startup growth backed by institutional legacy.
The IITM Alumni Fund will primarily focus on deep-tech domains such as space-tech, AI, medtech, cleantech, robotics, and enterprise SaaS. These startups are expected to emerge from IIT Madras’s incubation pipeline, which has already supported over 500 ventures valued collectively at more than Rs 50,000 crore and created over 11,000 jobs.
Professor Ashwin Mahalingam, Dean of Alumni and Corporate Relations, highlighted that the initiative will allow alumni to grow along with their alma mater by investing in high-impact ventures. The move is aligned with the institute’s vision of launching 100 deep-tech startups annually under its flagship ‘Start-up Shatam’ program.
A distinguishing feature of IIT Madras’s startup culture is professor-led entrepreneurship. Over 20 percent of the faculty are involved in startups as co-founders or technical advisors. This model is gaining attention nationally, encouraging investors to back research-driven ventures emerging from India’s top academic institutions.
The timing of the fund aligns with major alumni success stories, including the IPO of Ather Energy—India’s first publicly listed startup incubated at an IIT. Another IIT Madras-incubated company, Uniphore, has already achieved unicorn status in the conversational AI space. The new VC fund aims to provide structured support to ensure that more such ventures can scale globally.
While detailed fund architecture is yet to be released, the initiative is seen as a milestone in academia-backed venture funding. Experts believe the model could be replicated by other IITs and premier research institutions looking to tap into their alumni networks to support innovation.
The fund also addresses a critical gap in India’s startup ecosystem: patient capital for deep-tech ventures that often require long gestation periods. Professor V. Kamakoti, Director of IIT Madras, recently noted that unlike traditional consumer tech startups, deep-tech ideas often take a decade or more to mature. He emphasized the importance of long-term investor commitment to prevent premature exits and innovation fatigue.
By bridging the gap between academia, alumni wealth, and entrepreneurial ambition, the IITM Alumni Fund could become a landmark in India’s innovation journey. It is poised to turn research into revenue, knowledge into capital, and alumni pride into nation-building impact.
Photo Credit: Indian Startup News
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