IIT Startup Funding- Why Investors Bet Big on IIT Founders
India has seen a massive startup boom over the past decade—but here’s the catch: just 6.3% of startups were founded by IITians, yet they attracted nearly 49% of the total equity funding.
Let’s break down why the IIT tag still dominates the funding game.
The Numbers Behind the IIT Edge
According to Tracxn data shared with The Economic Times:
- From 2015 to early 2025, over 113,360 tech startups were founded in India
- Of these, 7,141 startups (6.3%) were founded by IIT alumni
- Yet, they bagged ₹33.7 billion in equity funding—nearly half the total pie
This isn’t luck. It’s a mix of pedigree, network, and performance.
IITs With the Most Funded Startups
| IIT Campus | Startups Founded | % That Got Equity Funding |
|---|---|---|
| IIT Bombay | 965 | 44% |
| IIT Madras | 487 | 43% |
| IIT Kharagpur | 760 | 42% |
| IIT Roorkee | 529 | 41% |
| IIT Kanpur | 614 | 41% |
| IIT Delhi | 1,024 | 38% |
| IIT Guwahati | 239 | 34% |
Source: Tracxn data compiled for ET
Why Do Investors Trust IIT Startups?
1. Tight Alumni Networks
Founders, VCs, and mentors often come from the same IIT circles—doors open faster.
2. Strong Technical Skills
IITs continue to attract India’s top talent via the world’s toughest entrance exam.
3. Track Record of Exits
IIT-founded startups have a history of scaling and delivering investor returns.
4. Investor Pattern Recognition
Pedigree reduces perceived risk. For early-stage VCs, background > business plan in many cases.
Real-World Impact: Not Just Numbers
- IITians founded companies like Flipkart, Delhivery, Ola, Zepto, and Razorpay
- These startups went on to define entire sectors and attract global investors
- The confidence in IIT founders often translates into faster funding rounds and better valuations
Expert View
🚀 “An IIT tag alone doesn’t guarantee success—but it definitely gets you a meeting,” says a senior VC at Sequoia India.
This insider view reinforces what data shows: pedigree still matters in India’s capital market.
Closing Thoughts
India’s startup landscape is becoming more inclusive—but the IIT founder halo remains a powerful magnet for equity capital.
Startups founded by IIT alumni received 49% of India’s equity funding since 2015, despite forming just 6.3% of total tech ventures. Strong alumni networks, technical skills, and proven track records continue to make IIT founders investor favorites across early-stage and growth-stage funding rounds.
