Professors turn founders amid the new deep tech gold rush; VCs take note

By Admin

08 Jul, 2025

A New Wave of Innovation in Indian Academia

India’s premier research institutions are witnessing a significant shift  professors are stepping beyond traditional academic boundaries and embracing entrepreneurship like never before. This growing trend of professor-founded startups, particularly in the deep tech space, is creating a gold rush of innovation, attracting venture capitalists who are eager to invest in cutting-edge, IP-driven ventures.

For decades, institutions like the Indian Institute of Science (IISc), Indian Institutes of Technology (IITs), Indian Institutes of Information Technology (IIITs), and BITS Pilani have been at the forefront of research. However, much of this pioneering work remained confined to academic journals and laboratories. That narrative is now changing.

The Rise of the Academic Entrepreneur

Today, these institutions are becoming breeding grounds for faculty-led startups. Reports indicate a 20–30% year-on-year growth in such ventures across IITs, IISc, IIITs, and BITS. Venture capitalists are no longer skeptical. On the contrary, they’re identifying this niche as a fertile ground for globally competitive, deep tech startups.

Ashwin Raghuraman, co-founder of Bharat Innovation Fund, shared, “We’ve invested in about eight or nine professor-led startups across IITs, IISc, and even global institutions like MIT and Caltech. It’s not the norm yet, but it's definitely a growing pattern.”

Breaking the “Lakshmi vs. Saraswati” Barrier

Historically, professors were hesitant to pursue commercial ventures, often torn between academia’s pursuit of knowledge (Saraswati) and the lure of wealth (Lakshmi). This mindset is rapidly evolving. Success stories and scaling ventures are validating the entrepreneurial path for faculty. Manu Iyer, co-founder of BlueHill VC, pointed out that seeing startups scale to Series B and C rounds has given confidence to academic founders that entrepreneurship is more than just a side experiment.

Success Stories Fuel the Movement

The journey of Ather Energy, which earned Rs 50 crore for the IIT Madras incubation centre, has become a beacon of possibility. Similarly, startups like Agnikul Cosmos, ePlane, and Pure EV are scaling successfully, further motivating professors to take the plunge.

One standout story is Manoj Gopalkrishnan, who transitioned from over a decade of teaching at IIT Bombay to founding Algorithmic Biologics, a molecular diagnostics startup. His COVID-19 research paper went viral, attracting strong VC interest and kickstarting his entrepreneurial journey.

Enablers: Incubation Centres and Institutional Support

Institutions are actively fostering this culture. At IISc, nearly 40% of the 120 startups under the Foundation for Science Innovation and Development (FSID) are faculty-led. FSID helps bridge the challenging gap between lab research and market-ready solutions     often referred to as the “valley of death” for early-stage ventures.

IIT Madras is leading this trend with 133 of its 457 incubated startups having faculty as co-founders or mentor-shareholders. 115 professors, more than 20% of the faculty, are actively involved in startup ventures. The recently announced Rs 200 crore IITM Alumni Fund is further empowering these innovators with direct VC support from alumni networks.

Investor Interest in Deep Tech

At IIT Bombay, the Society for Innovation and Entrepreneurship (SINE) has seen strong investor interest in sectors like cleantech, medtech, semiconductors, and agritech. Since 2023 alone, SINE has incubated 27 new faculty-led startups, bringing the total to 74.

BITS Pilani is also rapidly catching up. Over the last five years, more than 35 faculty startups have been launched, with 30% annual growth in entrepreneurial activity. Vice Chancellor Ramgopal Rao highlighted that around 25 patents have translated into startups and that they evaluate 15 ideas annually, funding around 8–10 each year.

Why Professors Make Great Founders

“Professors today, especially those in their 40s and 50s, deeply understand their domain and the soul of their technology,” said Rajaram of Speciale Invest, which has backed six faculty-led startups. These founders often bring decades of expertise, practical business insights, and a mission-driven approach to innovation, making them ideal for building sustainable deep tech ventures.

Conclusion: From Classrooms to Boardrooms

India is witnessing a powerful transition     professors are no longer just researchers and educators, but also innovators and entrepreneurs. As more success stories emerge, and as support from incubation centres and VC firms grows, the academic startup ecosystem is poised to play a transformative role in the country’s deep tech landscape. The gold rush is real, and at the heart of it are the minds that once only filled lecture halls     now shaping the future of global innovation.