CHENNAI: The Indian Institute of Technology Madras Research Park (IITMRP) has launched a Rs 600 crore deep-tech-focused venture capital fund aimed at supporting startups working in strategically critical technology domains. The fund, titled IIT Madras Unicorn Frontier Fund I, has appointed Unicorn India Ventures as its fund manager and includes a Rs 400-crore greenshoe option.
The fund is designed to back IP-led and engineering-intensive startups in frontier areas aligned with India’s long-term national priorities, including defence technologies, semiconductors, quantum computing, climate tech, robotics and space technologies. It will deploy capital through cheque sizes ranging from Rs 5 crore to Rs 10 crore and is expected to invest in around 25 to 30 startups.
According to IITMRP officials, the fund will follow a patient capital model with a 10+2-year structure. About 60% of the investable corpus will be deployed to build the initial portfolio, while the remaining 40% will be reserved for follow-on funding rounds to support scaling startups.
The investment strategy will adopt a multi-stage approach, deploying capital across companies at varying Technology Readiness Levels. While a significant portion of investments is expected to come from the IIT Madras incubation and research ecosystem, the fund will also actively scout for promising deep-tech startups across the broader Indian ecosystem.
The initiative marks a shift from traditional incubator grants to a dedicated venture capital structure, enabling larger cheque sizes and longer investment horizons to support complex product development cycles. The fund was announced by IIT Madras director V Kamakoti during the inauguration of Entrepreneurship Summit 2026 at the IIT Madras.
The three-day summit, organised by the Entrepreneurship Cell, features investor pitch platforms, fundraising forums and one of the largest startup expos in southern India, showcasing over 80 startups alongside student and school-level ventures. The fund will now seek regulatory approvals from SEBI, a process expected to take several months.