IIT Bombay launched India’s first deep tech venture capital fund managed by an academia-linked incubator on December 9, 2025. The Society for Innovation and Entrepreneurship (SINE) at IIT Bombay will manage the INR 250 crore Y-Point Venture Capital Fund.
This marks the first time an Indian academic institution has created and will independently manage its own venture capital fund. The fund received approval from the Securities and Exchange Board of India and is registered as a Category II Alternative Investment Fund.
Filling a Critical Gap in Startup Funding
The fund addresses a major problem facing deep tech startups in India: the lack of early-stage risk capital. Deep tech ventures require longer development periods, higher capital investments, and specialized mentorship compared to other startups.
Dr. K. Radhakrishnan, Chairperson of the Board of Governors at IIT Bombay, said the fund “will accelerate the lab to market journey by providing the right amount of capital to promising technologies to quickly move up the technology readiness level ladder.”
The fund will invest in 25 to 30 startups at pre-seed and seed stages. Each startup can receive up to INR 15 crore in funding. The investments will target companies emerging from IIT Bombay and other leading academic and research institutions across India.
Which Sectors Will Receive Investment?
The fund focuses on eight high-impact technology sectors. These include Artificial Intelligence, Advanced Computing, Advanced Manufacturing, and Advanced Materials. The fund will also invest in Nuclear Technology, Space and Defence Technology, Climate and CleanTech, and Life Sciences and Healthcare.
Prof. Shireesh Kedare, Director of IIT Bombay, explained the strategy behind the fund. “SINE, as an incubator, has played a pivotal role in the development of the startup ecosystem in IIT Bombay by providing critical infrastructure support, mentorship, access to capital, visibility and liquidity,” he said. “The fund will further enhance its role to speed up the journey from cutting-edge research to commercially viable products.”
The fund will invest only in companies building products backed by fundamental research. This means startups must have strong intellectual property and demonstrate potential for significant societal impact.
SINE IIT Bombay has supported over 500 startups and 1,000 innovators over the past two decades. This experience gives the fund managers deep knowledge of what deep tech ventures need to succeed.
Prof. Milind Atrey, Deputy Director who served as Professor-in-Charge of SINE for seven years, outlined the fund’s mission. “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,” he said.
The fund is designed specifically to address pain points that SINE has observed over years of working with technology startups. These include longer gestation periods, higher capital requirements, and the need for specialized mentorship and market access.
Strong Interest from Investors
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. Varghese added that SINE hopes to close two to three investments within the next two to three months.
What This Means for India’s Innovation Ecosystem
The 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 emphasized the global ambitions behind the initiative. “The fund will serve as a catalyst for building global competitive ventures by leveraging the world-class talent, academic knowledge and cutting-edge research within IIT Bombay and other leading academic and research institutions in the country,” he said.
Prof. Abhay Karandikar, Secretary of the Department of Science and Technology, congratulated IIT Bombay on the launch and praised SINE’s efforts.
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 research moves more quickly from laboratories to commercial markets. This could establish a template for other institutions to follow across India’s growing deep tech sector.
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