ENA Sectors 2025-10-23 17:42:49 <p><span style="font-size:14px"><strong>Chennai, Oct 23 (KNN)</strong> The IIT Madras Research Park (IITMRP) is setting up a Rs 500-crore venture capital fund to support early-stage deep-tech startups across India. </span></p> <p><span style="font-size:14px">According to Natarajan Malupillai, Group CEO of IITMRP, the fund aims to bridge critical financing gaps faced by startups in the seed, pre-Series A, and Series A stages.</span></p> <p><span style="font-size:14px">The research park is currently in the process of appointing a fund manager. It plans to include a 25% green-shoe option, which would allow the fund to expand beyond the initial corpus based on demand. </span></p> <p><span style="font-size:14px">The first close is targeted by March 2026, following approval from the Securities and Exchange Board of India (SEBI).</span></p> <p><span style="font-size:14px">The goal is to provide startups with enough runway to develop deep-tech products and attract commercial investment, said Malupillai. The fund will typically invest between Rs 4 crore and Rs 5 crore per startup. </span></p> <p><span style="font-size:14px">While IITMRP-incubated ventures will be the primary focus, the fund will also support deep-tech companies nationwide that align with key national themes.</span></p> <p><span style="font-size:14px">There has been strong interest from IIT-Madras alumni, including global members, who want to contribute to Indias growing innovation ecosystem. Having limited partners who understand both technology and markets is an added advantage, Malupillai noted.</span></p> <p><span style="font-size:14px">The fund will focus on three to four major themes that leverage IIT Madras research strengths. Given the long gestation periods of deep-tech ventures, it will follow a 10+1+1 model &mdash; a 10-year tenure with two optional one-year extensions.</span></p> <p><span style="font-size:14px">IITMRP is also in talks with the Anusandhan National Research Foundation (ANRF) and the Department of Science and Technologys Research, Development and Innovation (RDI) scheme to align its initiatives. </span></p> <p><span style="font-size:14px">The park already houses successful startups such as Ather Energy and Uniphore, and aims to create a multiplier effect in Indias deep-tech ecosystem.</span></p> <p><span style="font-size:14px"><em><strong>(KNN Bureau)</strong></em></span></p> 43867 https://knnindia.co.in/news/newsdetails/sectors/iit-madras-research-park-to-launch-rs-500-crore-vc-fund-for-deep-tech-startups 2025-10-23 17:42:49 knnindia.co.in