Fewer IIT and IIM Graduates Launching Startups in 2026
Elite Indian institutions see declining founder numbers despite a broader national startup ecosystem boom.
1Declining Elite Founder Participation
Data from Tracxn reveals a sharp decline in entrepreneurship among graduates from India's premier institutions. Between January and August 2026, only 79 IIT and 20 IIM alumni founded new technology startups. This contrasts with the 307 IIT and 71 IIM graduates who launched ventures during the entirety of the 2025 calendar year.
2Ecosystem Growth Paradox
While elite participation has dropped, the broader Indian startup ecosystem is expanding rapidly. Tracxn recorded 6,353 technology startups founded in the first eight months of 2026, significantly higher than the 3,969 startups founded throughout 2025. This indicates that the surge in new business formation is being driven by non-elite institution graduates.
3Drivers of Startup Formation
Industry experts suggest that the rise in startup creation is largely fueled by the accessibility of artificial intelligence and no-code development tools. These technologies have lowered the financial and technical barriers to entry. Additionally, widespread industry layoffs have pushed more professionals to view entrepreneurship as a viable alternative to traditional corporate employment.
4Engineering Dominance in Ventures
IIT alumni continue to represent a significantly larger share of startup founders compared to IIM graduates. As of August 2026, 6,147 startups featured at least one IIT alumnus, while 2,102 included an IIM graduate. This disparity reflects the strong technical and deep-tech orientation inherent in many of India's newly formed technology ventures.
5Complementary Skill Set Dynamics
Technical graduates often lead the initial setup of ventures due to their engineering backgrounds. Business expertise from IIM graduates and other professionals frequently complements these technical foundations as companies scale. This division of labor remains a standard pattern in the Indian startup landscape, where engineering prowess meets strategic business management for growth.
6Methodological Considerations
The analysis covered alumni from 13 IITs and 10 IIMs, providing a broad institutional scope. However, Tracxn noted that figures for 2026 are subject to change as more ventures complete the formal incorporation process. Because startup registration takes time, the current count may underrepresent the final number of ventures founded during this period.
7Untapped Talent Pool Concerns
The lack of a meaningful increase in founders from premier institutions suggests a large, untapped pool of elite talent. Investors like Vikram Gupta of IvyCap Ventures highlight that while the overall increase in startups is positive, the low participation from top-tier schools raises questions about the translation of high-level skills into new ventures.
8Future Outlook for Founders
The shifting demographic of founders suggests that the Indian startup landscape is becoming more democratized. As tools become more accessible, the reliance on elite institutional backgrounds for successful entrepreneurship is diminishing. Future trends will likely show whether this trend persists or if elite graduates will re-enter the startup space in higher numbers.
Original article: mint - industry — Fewer IIT and IIM Graduates Launching Startups in 2026