PanIIT Alumni India and the Andhra Pradesh government plan to create a ₹500-crore venture fund focused on deeptech companies, as part of a broader effort to channel capital, research and manufacturing activity into the state.
The proposed PanIIT Amaravati Venture Fund will seek capital from IIT alumni, industry and institutional investors and is targeting its first close by July 1, 2027, according to plans presented at the PanIIT Andhra Pradesh Summit in Vijayawada on Saturday.
The fund aims to back at least 25 Andhra Pradesh-based deeptech ventures by 2030.
The precise structure of the fund, including the respective financial commitments of PanIIT, the Andhra Pradesh government and private investors, was not immediately clear.
Principal R&D or manufacturing in AP
At least 50% of the companies the fund invests in will be expected to locate their principal R&D or manufacturing operations in Andhra Pradesh, according to material presented at the conference.
The localisation requirement is designed to ensure that the proposed fund does more than invest in companies headquartered elsewhere, by tying a significant part of its portfolio to research or manufacturing activity within the state.
Speaking to a panel of venture capital investors at the summit, Andhra Pradesh Chief Minister N Chandrababu Naidu made a direct pitch for investors to bring both capital and expertise.
“You bring money, you bring mentors. I will match your contribution,” Naidu said.
The precise mechanism through which the state would match private contributions, and whether the commitment would flow directly into the PanIIT Amaravati Venture Fund, was not immediately clear.
The proposed fund seeks to address two constraints that frequently confront deeptech startups: access to patient capital and access to experienced operators and industry networks.
Deeptech companies typically face longer product-development cycles and greater capital requirements than software-first startups, particularly in areas such as semiconductors, quantum technologies, aerospace, defence, healthcare and advanced manufacturing.
Amaravati Declaration
The venture fund sits within a broader framework laid out under the Andhra PanIIT Declaration, which seeks to create a long-term institutional relationship between the IIT ecosystem, industry and the Andhra Pradesh government.
Among the proposed initiatives is a permanent PanIIT Amaravati Council, which is expected to act as a coordinating platform for deeptech, research and innovation initiatives in the state.
The framework also includes a technology-transfer pipeline to identify research from IITs that can be commercialised in Andhra Pradesh, a 100-member global IIT mentor network and 10 industry chairs across universities and institutions in the state.
The Amaravati Council is intended to connect IIT alumni, startups, universities, industry and policymakers and provide a more permanent structure for initiatives emerging from the summit.
The broader framework also seeks to deepen collaboration between universities and industry, support startup creation and make it easier for research developed within the IIT ecosystem to move towards commercial deployment.
It also sets a target of incubating at least 50 startups in Andhra Pradesh by 2030.
IIT mentor network
PanIIT is looking to build a mentor network alongside the fund. A proposed 100-member Global IIT Mentor Networkis expected to connect founders with IIT alumni who can provide guidance across product development, go-to-market strategy, scaling and execution.
An initial cohort of 25 deeptech startups is expected to be matched with mentors, according to plans presented at the summit.
The mentor network is intended to complement the proposed venture fund by bringing operating experience and industry connections alongside capital.
Taken together, the fund, mentor network and Amaravati Declaration mark an attempt to link venture capital with IIT research and alumni expertise, while using Andhra Pradesh as a base for startup creation, R&D and manufacturing.
