India’s IIT Madras has launched a $72 million deep tech fund to support startups emerging from academic research, signaling a push to close the gap between labs and markets.
India’s ambition to build globally competitive deep tech companies is increasingly running through its universities.
This week, Indian Institute of Technology Madras announced the launch of a $72 million deep tech fund designed to back startups emerging from its research ecosystem. The fund is aimed at bridging a persistent gap in Indian innovation: translating advanced academic work into commercially viable companies.
The initiative places IIT Madras among a growing group of universities worldwide that are taking a more active role in venture creation rather than limiting themselves to licensing or incubation.
Closing the lab-to-market gap
India produces a large volume of engineering and scientific research, but comparatively few university spinouts reach global scale. Funding constraints, risk aversion, and limited early-stage capital for hardware-heavy or research-intensive projects have long slowed progress.
The new fund is intended to operate at precisely that fragile stage—when ideas are technically promising but commercially unproven. By providing patient capital and institutional backing, IIT Madras hopes to reduce the attrition that often occurs before startups can attract outside investors.
The focus on deep tech means backing companies working in areas such as advanced materials, energy systems, robotics, semiconductors, and industrial AI—fields where timelines are long and early risk is high.
A broader shift in India’s startup model
For much of the past decade, India’s startup boom has been dominated by consumer internet and fintech companies. While successful, those sectors require relatively little original research.
The IIT Madras fund reflects a growing recognition that long-term competitiveness will depend on building technology at the frontier—not just adapting global platforms to local markets.
Government policy has increasingly supported this view, encouraging universities to commercialize research and retain equity in spinouts. Institutional funds like this one provide the financial backbone needed to make that shift durable.
Institutional credibility as an advantage
Unlike traditional venture capital firms, university-backed funds bring technical depth and long-term alignment. Faculty access, shared infrastructure, and academic credibility can be decisive for startups navigating early development.
At the same time, the model carries risks. Universities must balance commercial ambition with academic independence, and success will depend on professional fund management rather than purely academic oversight.
What success would look like
The fund’s impact will not be measured by rapid exits. Instead, success would mean a steady pipeline of technically ambitious companies capable of surviving long development cycles and attracting global partners.
If it works, IIT Madras could become a template for how emerging markets turn elite research institutions into engines of industrial innovation—not just talent suppliers.
