Chennai, India — The Indian Institute of Technology Madras (IIT Madras) and venture capital firm Unicorn India Ventures have announced the launch of a ₹600 crore deeptech-focused fund, aimed at supporting early- and growth-stage startups working in advanced technology sectors.
The new fund is expected to back startups emerging from research institutions, incubators, and India’s broader innovation ecosystem. The initiative reflects growing investor interest in deep technology areas such as artificial intelligence, semiconductor design, robotics, space technology, clean energy, and advanced manufacturing.
Focus on Research-Led Innovation
Officials associated with the initiative said the fund will prioritise startups built on strong intellectual property and research foundations. IIT Madras, through its incubation and research ecosystem, has been one of India’s leading institutions in promoting technology entrepreneurship.
The collaboration aims to bridge the gap between laboratory research and commercial-scale production by providing both capital and institutional support.
Deeptech startups typically require longer development timelines and higher capital investment compared to consumer internet ventures. As a result, patient capital and domain expertise are considered critical for their growth.
Strengthening India’s Deeptech Ecosystem
India’s deeptech landscape has expanded in recent years, supported by policy incentives and increasing private sector participation. Startups in areas such as chip design, electric mobility systems, aerospace engineering, and advanced materials are attracting domestic and global attention.
Industry observers note that dedicated funds of this scale signal a maturing venture ecosystem. With a corpus of ₹600 crore, the fund is expected to make multiple investments across seed, Series A, and later funding rounds.
The move aligns with India’s broader push toward technology self-reliance, particularly in strategic sectors like semiconductors, defence systems, and industrial automation.
Role of IIT Madras Incubation Ecosystem
IIT Madras hosts one of the country’s most active startup incubation networks. Over the years, startups emerging from its ecosystem have attracted significant funding and created employment opportunities across technology segments.
By partnering with an established venture capital firm, the institute aims to create a structured pipeline for startups transitioning from research prototypes to scalable commercial ventures.
Investment Strategy and Timeline
According to individuals familiar with the development, the fund will deploy capital over several years, targeting high-impact innovation-led companies. Apart from funding, portfolio startups are expected to receive mentorship, industry access, and technical validation support.
Deeptech investments often focus on long-term value creation rather than short-term profitability. As such, investors typically evaluate startups based on technology differentiation, intellectual property strength, and global scalability potential.
Growing Capital Flow into Deeptech
The announcement comes at a time when India’s venture capital ecosystem is diversifying beyond traditional consumer technology investments. Investors are increasingly exploring sectors that combine scientific research with commercial applications.
Government initiatives supporting semiconductor manufacturing, space startups, and clean technology innovation have also created momentum for deeptech entrepreneurs.
Outlook
The ₹600 crore fund marks a significant step in strengthening institutional backing for deep technology ventures in India. By combining IIT Madras’ research expertise with venture capital experience, the initiative seeks to accelerate innovation and commercialisation.
As global competition intensifies in advanced technology domains, sustained funding support and academic-industry collaboration are expected to play a crucial role in shaping India’s deeptech growth story.
Last Updated on Wednesday, February 11, 2026 10:42 am by Startup Times
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