The Indian Institute of Technology Madras (IIT Madras) is making a significant push to bolster India's deep tech startup ecosystem with the launch of a ₹600 crore venture capital fund. The "IIT Madras Unicorn Frontier Fund I" will focus on supporting startups in strategically critical technology domains, aligning with India's long-term national priorities.
IIT Madras Research Park (IITMRP) has partnered with Unicorn India Ventures (UIV) for this initiative, with UIV acting as the fund manager. The fund also has a ₹400 crore greenshoe option, potentially increasing the total investment pool to ₹1000 crore.
The fund will target early to late-stage startups, aiming to invest in over 25 companies with intellectual property and engineering-intensive business models. These startups will operate in sectors including space tech, defense, semiconductors, medtech, quantum computing, climate tech, and robotics. The typical initial investment will range from ₹8-10 crore, with an additional 40% of the fund reserved for follow-on investments. Cheque sizes will generally range from ₹5 crore to ₹10 crore.
IITMRP officials have stated the fund will adopt a patient capital model with a 10+2 year structure. While a significant portion of investments is expected to come from the IIT Madras incubation and research ecosystem, the fund will actively scout for promising deep-tech startups across India.
V. Kamakoti, Director of IIT Madras, emphasized the importance of science and technology in India's growth story and the vision of "Viksit Bharat" by 2047. He noted the need for technological sovereignty in areas like AI, semiconductors, defense tech, and quantum technology, and the importance of reducing reliance on technology imports.
This initiative marks a shift from traditional incubator grants to a dedicated venture capital structure, enabling larger investments and longer investment horizons to support complex product development cycles. IIT Madras has a well-established deep-tech startup ecosystem, with over 525 startups valued at more than $6 billion under the IITM Incubation Cell and sector-specific incubators. As of FY25, these startups have collectively created over 11,000 jobs, filed more than 700 patents, and attracted ₹12,000 crore in investments. In FY25 alone, IIT Madras incubated more than 100 deep-tech startups.
Unicorn India Ventures is expanding its deep tech investment strategy, building on its recent ₹1,200 crore third fund, which also focuses on deep tech areas. UIV is particularly interested in foundational infrastructure layers rather than crowded AI application layers. They anticipate deep tech startups will reach public markets in seven to eight years, after building sufficient scale and operational track record.