IIT Madras Launches Rs 600 Cr Fund for Deep Tech

• Rs 600-crore fund to support deep tech startups in sectors like semiconductors and electric aviation, bridging funding gaps
• The fund backs entrepreneurs across India, with 103 startups incubated by IIT Madras, including 51 by alumni
• Experts believe India’s evolving ecosystem will soon produce globally competitive deep tech companies, encouraging entrepreneurial risk-taking

The IIT Madras Research Park has established the "IITM Unicorn Frontier Fund I" which operates as an Rs 600-crore venture capital fund that will help deep tech startups throughout India. The fund focuses on high-risk sectors which require innovative solutions for their work in semiconductors, space, electric aviation, shipbuilding, advanced batteries and chemical engineering.

The fund aims to solve the major funding problem which deep tech businesses encounter while they work through their most difficult developmental period between their initial funding and operational success. This phase which follows seed and angel investments marks a period when most startups encounter difficulties because their products take extended time to develop.

The fund provides essential funding support for startups according to Prof. V. Kamakoti who serves as the director of IIT Madras. He described the funding period which requires founders to demonstrate dedication through extended effort as a "valley of hope."

Also Read: Tamil Nadu Unveils New Deep-Tech Startup Policy

The initiative is not limited to IIT Madras incubated startups but extends its support to entrepreneurs nationwide. The 103 startups incubated by IIT Madras include 51 companies which alumni established.

Ather Energy, an electric scooter manufacturing company’s Co-Founder Swapnil Jain explained the project purpose through his personal experiences as an IIT Madras student who became an entrepreneur. He noted that while India has produced many unicorns deep tech unicorns remain rare because the country lacks both permanent funding sources and a culture of taking business risks.

The Indian market will develop global deep tech companies according to Jain who sees increased investor confidence and ecosystem development as key factors for this transformation in the country's innovation system.