VCs Flock To IIT Madras In Search Of Deeptech Deals
In recent years, venture capitalists (VCs) have increasingly turned their attention to the Indian Institute of Technology (IIT) Madras, seeking the next wave of deep-tech startups. This shift comes as a result of IIT Madras’s long-term commitment to nurturing slow-burn, intellectual property-heavy innovations, which has positioned it as a leading incubation center for deep-tech ventures in India.
The Evolution of IIT Madras as a Deep-Tech Hub
While many institutions opted for the quicker returns associated with consumer technology, IIT Madras focused on deep-tech for nearly two decades. This strategy has created a compounding advantage just as investor interest in artificial intelligence (AI), space technology, and advanced manufacturing has surged.
The IIT Madras Incubation Cell (IITMIC) now engages with over 200 investors, with annual fund flows skyrocketing from $13–22 million a decade ago to an impressive $291 million in 2025. The cumulative startup valuation of over 500 incubated and alumni companies has reached ₹53,000 crore (approximately $6 billion).
The Technical Neighbourhood Effect
Beyond financial support, IITMIC fosters a unique “technical neighbourhood effect.” This environment consists of dense clusters of complementary startups, shared infrastructure, mentorship, and alumni networks. Such an ecosystem significantly reduces execution risks for founders before they approach VCs.
As a result, IITMIC has evolved into a deal-origination and de-risking partner for investors, setting a benchmark for how patient incubation can transform academic research into globally competitive technology companies.
Investor Engagement and Deal Flow
According to Tamaswati Ghosh, CEO of IITMIC, the nature of investor engagement has transformed dramatically. “In the past, it used to take multiple calls and months of follow-up for investors to visit; now they are lining up, with several deals closed in the past year,” she explains. Structured investor engagements have increased to two to four sessions each week, with multiple requests from investors seeking curated access to IITMIC startups.
VCs specializing in deep-tech, such as Shashank Randev, Founder and General Partner at 247VC, are dedicating more time to evaluating companies at IIT Madras. His fund has been assessing startups in various sectors, including biomedical engineering, bio-hardware, GPU chip design, quantum technologies, space-tech components, propellers, and 3D metal printing.
Success in Numbers
The rising profile of IITMIC is evident in several key metrics:
- Investor Engagement: The center now collaborates with more than 200 investors, including VCs, angel investors, high-net-worth individuals (HNIs), family offices, and corporate venture funds.
- Fund Flows: Annual fund flows to IITMIC-incubated startups have surged, reaching $121 million in 2024 and $291 million in 2025, a significant increase from the $13-22 million range in 2015-2018.
- Startup Valuations: IITMIC’s portfolio includes some of India’s most notable deep-tech successes, such as Ather Energy, which became the first IITMIC-backed company to go public, and Uniphore, valued at $2.5 billion.
- Job Creation and Patents: Startups from IITMIC have generated over 11,000 direct jobs and produced more than 700 patents, showcasing the center’s impact on the economy.
Comparative Analysis with IIT Delhi
While IIT Madras has achieved remarkable success, it is worth comparing its performance with IIT Delhi. As of 2025, IIT Delhi’s incubation arm, the Foundation for Innovation and Technology Transfer (FITT), has incubated over 280 startups and facilitated more than ₹450 crore in cumulative funding.
Despite IIT Delhi’s smaller scale, it is actively broadening its scope with new initiatives, such as a semiconductor-startup incubation program under “Pitch Perfect 2.0,” indicating potential for future growth.
The Secret Sauce Behind IITMIC’s Success
Several factors contribute to IITMIC’s success:
- Long-Term Vision: IIT Madras’s commitment to deep-tech has allowed it to build a robust ecosystem that supports innovation over time.
- Strong Alumni Network: The extensive alumni network provides mentorship and support, which is crucial for new startups.
- Shared Resources: The availability of shared infrastructure and resources lowers operational costs for startups, enabling them to focus on innovation.
- Investor Relationships: Building strong relationships with a diverse range of investors has facilitated increased funding and support for startups.
Conclusion
As venture capitalists increasingly recognize the potential of deep-tech startups, IIT Madras stands out as a beacon of innovation and success. With its unique approach to incubation, a strong network of support, and a focus on long-term value creation, IIT Madras is well-positioned to continue leading the charge in India’s deep-tech landscape.
Note: The information in this article is based on data available as of October 2023 and may be subject to change.
