PanIIT and Andhra Pradesh government plan to create a deep technology fund worth 500 crore rupees

Alumni of PanIIT India, in collaboration with the Government of Andhra Pradesh, intend to establish a venture fund focused on deep technology companies with a capital of 500 crore rupees. This initiative is part of broader efforts to attract capital, research activities, and manufacturing capacity to the state.

The proposed PanIIT Amaravati Venture Fund will attract funds from IIT alumni, industry representatives, and institutional investors. According to plans presented at the PanIIT Summit in Andhra Pradesh in Vijayawada on Saturday, the first round of fund closure is expected by July 1, 2027.

The primary goal of the fund is to support at least 25 deep technology startups in Andhra Pradesh by 2030. Although the exact structure of the fund, including the financial commitments of PanIIT, the Andhra Pradesh government, and private investors, was not immediately clear, it was noted that at least 50% of the companies the fund invests in must have their primary R&D or manufacturing facilities in Andhra Pradesh.

This localization requirement is intended to ensure that the fund does more than just invest in companies headquartered elsewhere, linking a significant portion of its portfolio to research or production activities within the state.

Addressing the group of venture capital investors at the summit, Chief Minister of Andhra Pradesh N Chandrababu Naidu made a direct appeal to investors to bring both capital and expertise. Naidu stated: 'You bring the money, you bring the mentors. I will ensure alignment with your contribution.'

The precise mechanism by which the state will match private contributions was not immediately clarified, nor whether this commitment would go directly into the PanIIT Amaravati Venture Fund.

The proposed fund aims to address two challenges frequently faced by deep technology startups: access to long-term capital and access to experienced operators and industry networks. Deep tech companies typically require longer product development cycles and larger capital expenditures compared to software-focused startups, especially in areas such as semiconductors, quantum technologies, aerospace, defense, healthcare, and advanced manufacturing.

This venture fund fits into the broader concept outlined in the Andhra PanIIT Declaration, which seeks to establish long-term institutional links between the IIT ecosystem, industry, and the Andhra Pradesh government. Proposed measures include the creation of a permanent PanIIT Amaravati Council, which should serve as a coordinating platform for deep technology, research, and innovation initiatives in the state.

The framework also includes a technology transfer pipeline to identify research from IITs that can be commercialized in Andhra Pradesh, as well as a global network of 100 IIT mentors from 10 industry departments in the state's universities and institutions.

IIT Mentor Network

The Amaravati Council is conceived as a means to connect IIT alumni, startups, universities, industry, and policymakers, providing a more permanent structure for initiatives arising from the summit. The broader concept is also aimed at deepening collaboration between academia and industry, supporting startup creation, and streamlining the transition of research developed in the IIT ecosystem to commercial implementation.

Furthermore, it sets a goal to incubate at least 50 startups in Andhra Pradesh by 2030. PanIIT plans to create a mentor network parallel to the fund. The proposed Global IIT Mentor Network of 100 individuals should connect founders with IIT alumni who can provide guidance on product development, market entry strategy, scaling, and execution.

According to the plans presented at the summit, an initial cohort of 25 deep technology startups should be matched with mentors. The mentor network is intended to complement the proposed venture fund by providing operational experience and industry connections alongside capital.

Amaravati Declaration

Collectively, the fund, the mentor network, and the Amaravati Declaration represent an attempt to link venture capital with IIT research and alumni expertise, using Andhra Pradesh as a base for creating startups, R&D, and manufacturing.

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Andhra Pradesh and PanIIT launch deep technology fund worth 500 crore rupees

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