The Foundation was founded in 1956 to reflect a renewed co-operation between Finnish business and engineering graduates in the post-war era. KAUTE Foundation was founded by the Finnish Association of Business School Graduates and the Alumni Association for Aalto University’s Technology Students (Pyöreän Tornin Kilta).

In the 1950s Finnish economy was undergoing strong post-war growth. The nation knew that shared welfare required both hard work and expertise. The need for more highly-educated workers was especially pressing. KAUTE Foundation was founded to provide financial support for studying, teaching, and research within business and engineering sciences.

In November 2016 the Foundation celebrated the 60th anniversary of its founding. To mark the jubilee year, the Foundation started an appeal for funds, with an emphasis on digital economy. The main goal is to strengthen scientific business and engineering research focusing on digitalisation – a vital factor for Finnish business – and the related international networks.