IIT Bombay’s Deep Tech VC Fund Worth INR 250 Crore
On December 9, 2025, IIT Bombay launched India’s first deep tech venture capital fund, marking a significant milestone in the academic and entrepreneurial landscape of the country. The fund, named Y-Point Venture Capital Fund, is managed by the Society for Innovation and Entrepreneurship (SINE) at IIT Bombay and has a corpus of INR 250 crore.
Significance of the Fund
This initiative is groundbreaking as it represents the first time an Indian academic institution has created and will independently manage its own venture capital fund. The fund has received approval from the Securities and Exchange Board of India (SEBI) and is categorized as a Category II Alternative Investment Fund.
Addressing Startup Funding Challenges
The Y-Point Venture Capital Fund aims to fill a critical gap in the funding ecosystem for deep tech startups in India. These startups typically face challenges such as:
- Longer development periods
- Higher capital investments
- Need for specialized mentorship
Dr. K. Radhakrishnan, Chairperson of the Board of Governors at IIT Bombay, emphasized that the fund is designed to “accelerate the lab to market journey by providing the right amount of capital to promising technologies.” The fund will invest in 25 to 30 startups at pre-seed and seed stages, with each startup eligible to receive up to INR 15 crore in funding.
Investment Focus Areas
The fund will target companies emerging from IIT Bombay and other leading academic and research institutions across India. It will focus on eight high-impact technology sectors:
- Artificial Intelligence
- Advanced Computing
- Advanced Manufacturing
- Advanced Materials
- Nuclear Technology
- Space and Defence Technology
- Climate and CleanTech
- Life Sciences and Healthcare
Prof. Shireesh Kedare, Director of IIT Bombay, explained that SINE has played a pivotal role in developing the startup ecosystem by providing critical infrastructure support, mentorship, access to capital, visibility, and liquidity. The fund will further enhance this role, speeding up the journey from cutting-edge research to commercially viable products.
Criteria for Investment
The Y-Point Venture Capital Fund will invest exclusively in companies that build products backed by fundamental research. This means that startups must possess strong intellectual property and demonstrate potential for significant societal impact. Over the past two decades, SINE IIT Bombay has supported over 500 startups and 1,000 innovators, providing the fund managers with deep knowledge of what deep tech ventures need to succeed.
Mission and Vision
Prof. Milind Atrey, Deputy Director and former Professor-in-Charge of SINE, outlined the fund’s mission. He stated, “By supporting deep-tech ventures with strong intellectual property and societal impact, we aim to catalyze breakthroughs that address pressing challenges in areas like healthcare, sustainability, and national security.” The fund is designed to address specific pain points observed by SINE over years of working with technology startups.
Investor Interest and Future Prospects
Shaji Varghese, CEO of SINE, reported strong early interest in the fund. “Considering the overwhelming response from IIT Bombay alumni to participate in the fund and active interest from institutional investors and corporate partners, we are confident about closing the fund raise in the next 6-9 months,” he said. The fund has already begun evaluating potential investments and aims to close two to three investments within the next two to three months.
Impact on India’s Innovation Ecosystem
The establishment of this fund enables direct participation by the private sector in IIT Bombay’s innovation and entrepreneurship ecosystem. Alumni, institutional investors, and corporate partners can now invest in early-stage technologies emerging from academic research. Dr. Radhakrishnan highlighted the global ambitions behind this initiative, stating, “The fund will serve as a catalyst for building globally competitive ventures by leveraging world-class talent, academic knowledge, and cutting-edge research within IIT Bombay and other leading academic and research institutions in the country.”
A New Model for Academic Institutions
The INR 250 crore fund represents a new model for Indian academic institutions. By managing their own venture capital funds, universities can maintain closer connections with startups and ensure that research moves more quickly from laboratories to commercial markets. This initiative could establish a template for other institutions to follow across India’s growing deep tech sector.
Conclusion
The launch of IIT Bombay’s deep tech VC fund is a significant development in the Indian startup ecosystem. By addressing the unique challenges faced by deep tech startups and providing essential funding, mentorship, and support, this fund has the potential to catalyze innovation and drive economic growth in the country.
Note: This article is based on information available as of December 2025 and aims to provide an overview of IIT Bombay’s deep tech VC fund and its implications for the startup ecosystem in India.
