IIT-M Deep-tech VC Fund Makes First Close, Targets Rs 1,000 Crore Corpus
The fund seeks to address what IIT-M describes as a shortage of patient capital for deep-tech ventures, which typically require longer periods of technology development, validation and commercialisation, compared with conventional startups
CHENNAI: Indian Institute of Technology Madras (IIT-M) has announced the first close of a dedicated deep-tech venture capital fund aimed at providing long-term capital to technology-intensive startups emerging from or supported by its ecosystem.
The IIT-M Unicorn Frontier Fund I, launched by IIT -M Research Park and Unicorn India Ventures, is targeting a corpus of Rs. 600 crore to Rs. 1,000 crore. The first close was announced by IIT-M director V. Kamakoti at Sangam 2026, the annual conference of the IIT-M Alumni Association, held in Bengaluru on Saturday.
The fund seeks to address what IIT-M describes as a shortage of patient capital for deep-tech ventures, which typically require longer periods of technology development, validation and commercialisation, compared with conventional startups.
Alumni participation has been significant as investments from IIT-M alumni exceeded Rs. 150 crore, according to the institute.
The fund will primarily invest in IP-led and engineering-intensive startups working in areas including robotics, space technology, defence technology and semiconductors, with a focus on sectors considered strategically important for India.
A majority of the portfolio will comprise early-stage deep-tech companies at technology readiness levels (TRL) 3–4, the institute said. Around 60 per cent of the fund corpus will be deployed towards building the initial portfolio, while the remaining amount will be kept for follow-on rounds.
The fund has been structured with a 10+2-year tenure, reflecting the longer development and commercialisation cycles associated with deep-tech businesses.
Natarajan Malupillai, group CEO, IIT-M Research Park and Incubation Cell, said the fund, with a target corpus of more than Rs. 600 crore, is expected to support 24–30 companies.
Under the partnership, IIT-M Research Park and Unicorn India Ventures will jointly work on strategic portfolio construction. A substantial portion of the investments is expected to come from the wider IIT-M innovation ecosystem, while the remaining investments will be sourced from the broader Indian deep-tech ecosystem.
The initiative follows IIT-M’s announcement at last year’s Sangam of plans to establish a dedicated venture capital fund for deep-tech startups. The objective is to help technologies emerging from research and incubation move towards scalable products and companies.
Kamakoti said the fund was intended to help promising startups overcome the challenges involved in moving from technology development to commercial scale.
The fund was announced at Sangam 2026, the seventh edition of IIT-M Alumni Association’s flagship annual conference, organised in collaboration with IIT-M under the theme ‘Atmanirbhar Bharat – Building a Self-Reliant India’.